Indian equity benchmarks snapped a two-day losing streak to jump over a percent on December 7 on positive global cues and buying in financial names on the eve of Reserve Bank of India’s monetary policy outcome.
At close, the Sensex was up 886.51 points or 1.56 percent, at 57,633.65, and the Nifty was up 264.40 points, or 1.56 percent, at 17,176.70.
Investor wealth grew by Rs 349,164.18 crore during the session, with the BSE market cap at Rs 2,60,21,935.85 crore, up from Rs 2,56,72,771.67 crore on December 6.
The market opened on a strong note and maintained the momentum throughout the session but for the final hour when there was some profit-booking at higher levels.
Indian bourses staged a recovery supported by broad-based buying, while healthcare stocks lost ground, said Vinod Nair, Head of Research at Geojit Financial Services.
"In the Indian Markets, banking and financial stocks advanced since the MPC is scheduled to announce its policy decision tomorrow where the RBI is likely to keep its policies unchanged considering the short-term uncertainties," he added.
Broader indices, too, gained but not as much as the benchmarks, with BSE midcap and smallcap indices rising 1 percent each.
Hindalco Industries, Tata Steel, Axis Bank, ICICI Bank and Tata Motors were among the top Nifty gainers. Losers included Cipla, Britannia Industries, Divis Labs, IOC and Asian Paints.
All sectoral indices ended in the green, with Nifty bank, metal and PSU bank indices adding 2-3 percent.
Stocks and sectors
On the BSE, the metal index rose 3 percent, while bank and realty indices added over 2 percent each. Auto, capital goods, IT, oil & gas and power indices were up a percent each.
Among individual stocks, a volume spike of more than 200 percent was seen in NALCO, Whirlpool of India and Torrent Pharma.
A long build-up was seen in Whirlpool of India, Torrent Power and Torrent Pharma, while there was a short build-up in Persistent Systems, Vodafone Idea and Britannia Industries.
Over 200 stocks, including Tanla Platforms, IFCI and BEML, hit a 52-week high on the BSE.
The Nifty formed a bullish harami kind of candle on the daily scale and buying interest was seen at all levels.
It has to cross and hold above 17,200 for an up move towards 17,350 and 17,500, whereas on the downside, support is at 17,000 and 16,800, said Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services.
Outlook for December 8
Shrikant Chouhan, Head, Equity Research (Retail), Kotak Securities
The uptrend wave could continue in the near future but due to overstretched intraday momentum, the market may consolidate in the 17,075-17,280 range.
The uptrend would be vulnerable below 17,075.
Mohit Nigam, Head-PMS, Hem Securities
Investors will be tracking the outcome of the MPC meeting to decide their next move.
Immediate support and resistance for Nifty 50 is 16,800 and 17,300 and for the Bank Nifty 35,700 and 37,000.
Palak Kothari, research associate, Choice Broking
The Nifty has support at 17,000 and resistance at 17,300. If it goes past 17,300, it can towards 17,500-17,700.
For Bank Nifty, the support is at 35,500 and resistance at 37,000.Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before making any investment decisions.