The Nifty50 index closed 84.80 points, or 0.81 per cent, up at 10,539.75 today, while the BSE Sensex added 294.71 points, or 0.87 per cent, to close at 34,300.47 today. In the Nifty50 pack, 33 stocks settled in the green and 17 in the red. The BSE Midcap and Smallcap indices outperformed the Sensex, closing 1.31 per cent and 1.60 per cent up, respectively.
Indian equity indices returned to winning ways today, buoyed by sustained buying in pharma, financial, capital goods, metal and power stocks amid revival in global cues. Despite the rally, market participants were looking cautious ahead of the consumer price inflation numbers, to be announced later in the day. The reintroduction of LTCG tax and widening fiscal deficit along with concern over rising inflation were the other key factors that had made market nervous.
The Nifty50 rose today in a relief rally, forming a small bullish candle on the daily chart. The 50-pack index, though, could not take out its 50-day moving average at 10,568 on an intraday basis. The momentum oscillators turned positive and generated a buy signal on the lower time frame chart. Ideally, this rally should get extended for a couple of sessions, unless there is a shift in sentiment in global markets once again on the negative side. The Nifty has to continue to hold above the 10,500 level to witness an upmove towards 10,650. A slip below the 10,480 level can attract the next leg of decline towards the 10,400-10,350 range.