Why is the Market Rising Today? Domestic markets wiped off opening losses and edged higher in Monday’s trade amid mixed global cues. The Indian benchmarks kicked off the last week of 2022 on a firm note on Monday, led by gains in banking, financial and stocks after they suffered their biggest monthly losses in December – worst since 1994 – battered by a host of global headwinds like a resurgent Covid crisis, fears of further tightening of rates by central banks around the world, and a looming recession.
At 2 PM, the Sensex is up 692.86 points or 1.16 percent at 60,538. Nifty is up 198.10 points or 1.11 per cent at 18,004.
Broader markets, too, rose in tandem with benchmark indices, as Nifty MidCap 100 and Nifty SmallCap 100 indices advanced up to 1 per cent.
Barring Nifty Pharma index, which was fractionally lower in trade, all sectors swimmed in the sea of green. Nifty Metal, and Nifty Realty indices gained the most, up to 1 per cent each.
Nifty PSU Bank was trading nearly 5 per cent higher at 4,077.20 led by Indian Overseas Bank (up 11.83 per cent), Union Bank (up 11.03 per cent) and Bank of India (up 8.59 per cent).
Ravi Singhal-CEO GCL, said: “As we can see, the market has bounced back exactly from the Cup and Holder pattern breakout 41,600 in November month. It has now been tested, so we believe one way can come from here for new high stop loss at 41,400.”
Will the Rally Continue?
“The market selloff on Friday was the consequence of the cumulative impact of Covid fears, valuation concerns, and margin calls in many momentum stocks. It is important to note that the 320 point cut in Nifty was caused on a day when DIIs bought heavily for Rs 3398 crores and FIIs sold only for Rs 706 crore,” V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said.
“This means the selling was triggered by HNIs and retail which, in turn, triggered margin calls in momentum stocks that led to steep cuts in these segments. Heavy FII selling in call options in the derivatives segment indicate that recovery will be slow and tough,” Vijayakumar added.
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