Broader markets bounce back after sharp correction

The Nifty has been consolidating in a narrow range at higher levels for the last few sessions, while the broader markets have bounced back strongly, especially after a sharp recent correction, Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services, said on Thursday.

While the Nifty closed 80 points, or 0.36 per cent, up at 22,514.65 on Thursday, the Sensex ended 350.81 points, or 0.47 percent, higher at 74,227.63, their best close ever.

Sector-wise, it was a mixed bag with buying seen in private banks and IT stocks, Khemka said.

The Q4 business updates from a few prominent companies were largely encouraging, driving stock-specific action in the market, he added.

“We expect some volatility on Friday, especially in the rate-sensitive sector amid the RBI’s policy meeting. Overall, we maintain our positive bias on the market, and any dip can be viewed as a buying opportunity,” Khemka said.

Rupak De, Senior Technical Analyst at LKP Securities, said the Nifty remained highly volatile as the index fluctuated within the range of 22,300 and 22,600 throughout Thursday.

“Immediate support is positioned at 22,300; a decisive drop below this level could lead the index towards 22,000-21,900 in the short term. On the upside, resistance is observed at 22,600-22,650,” he said.