The domestic benchmark indices recovered from six-week lows as BSE Sensex gained as many as 352.03 points, or +1.08 per cent, to close at 32,949.21 today, while the Nifty50 ended the session at 10,166.70 today, up 123 points, or +1.22 per cent, with as many as 43 advances and only 7 declines among the 50 stocks. The smart rebound today came on the back of falling crude oil prices, low-level buying and revival in global cues.
Benchmark indices ended higher with Sensex ending over 350 points higher, and Nifty ending firmly above 10,150-mark, bouncing back after two days of losses today, led by banking, telecom, metal and auto stocks. RBI Governor Urjit Patel said on Wednesday the government would "in coming days" detail how it plans to inject an announced $32 billion into state-run lenders, which was announced in October. Lenders such as State Bank of India rose higher on expectations that the government would soon reveal details of a recapitalisation plan. However, broader gains were capped ahead of elections in the western state of Gujarat due this weekend, in a critical test for Prime Minister Modi.
In a relief rally, Nifty50 made a solid bullish candle today to settle above its immediate resistance level, trapping bears below the 100-day SMA as it paired almost all losses in last three sessions to close near to 50-DMA at 10,190. The index negated its formation of lower highs lower lows of the last six trading session by surpassing its previous day's high of 10,104 and headed towards 10,180 zones. On the daily charts, this was the first session in eight, when the index made a bullish candle. However, it will be too early to conclude that correction has ended at a recent low of 10,033, unless Nifty50 get past 10,410 levels in the next few trading sessions. In the short term, it has to sustain above 10,118-10,094 to bounce back upto the 10,250-10,300 zones, while on the downside major support is seen at 10,050.