In the first decent gain of 2018, the BSE Sensex rallied 176.26 points or 0.52 per cent to 33,969.64, while the Nifty50 regained the 10,500 after gaining 61.60 points or 0.59 per cent to end at 10,504.80 as India's services industry PMI bounced back to modest growth in December after contracting in the previous month. As many as 34 stocks from the Nifty50 index closed in the green.
The bulls on Dalal Street sprung back to life today, as domestic benchmark indices gained around half a per cent on handsome gains in shares of public sector banks after the government sought extra spending of Rs 80,000 crore to raise recapitalisation bonds that will help lenders deal with bad debts and revive credit growth. Investors now await December-quarter results, including from Tata Consultancy Services and Infosys that are scheduled late next week.
The Nifty50 saw a smart comeback today and closed above the psychological mark of 10,500. The index formed a small bullish candle on the daily chart. A few momentum oscillators on lower-time frame charts have generated buy signals today, whereas the daily MACD turned away from its signal line without generating a sell signal. Our market witnessed sustained buying interest till the end of session, which indicates that the bulls are back to drive a fresh surge. Now, the index has to continue to hold above 10,450 to extend its move towards 10,550 and then 10,600 levels, while on the downside, supports are seen at 10,400 level.