The investors on Dalal Street cheered the BJP winning Gujarat assembly elections today as the benchmark indices recovered from the morning mayhem to end nearly half a per cent higher. BSE Sensex made a smart recovery during the day after initially plunging 800 points to end 138.71 points or +0.41 per cent higher at 33,601.68 today, while Nifty50 ended at 10,388.75 today, up 55.50 points or +0.54 per cent.
After plunging over 2 per cent in opening trade, when vote count trend showed a lead for the Congress in Gujarat, the benchmark indices swung into the green as the trend swung in favour of the BJP. The Nifty index crashed to hit sub-10,100 level at 10,074. But as soon as the trend reversed, the index recouped losses to enter the positive terrain. It moved over 350 points in a single day.
The Nifty index which slipped towards its crucial support placed at 100-days moving average bounced back to close above 10,350 levels today. The index engulfed the price movement of last few sessions and formed a bullish candle which closely resembles a 'High Wave' kind of pattern on the daily candlestick charts. The pattern indicates a market in which there is a lot of uncertainty and indecisiveness. For the up move to continue, the index has to hold above 10,300-10,350 levels. But, if index witness follow-up buying then Nifty could well head towards 10,600 levels, suggest experts.