Sensex, Nifty snap losing streak as realty, private bank and IT stocks rally

Mumbai , Aug 20 (IANS) The benchmark equity indices snapped their recent losing streak on Thursday, with the Nifty ending a seven-session decline and the Sensex reversing a four-day fall, supported by gains in realty, private banking and IT stocks.

The Sensex rose 628.04 points, or 0.82 per cent, to close at 77,537.72, while the Nifty gained 153.55 points, or 0.64 per cent, to settle at 24,231.85.

Commenting on Nifty technical outlook, experts said that for the next session, immediate support is placed at 24,100, followed by 24,000, while resistance is seen at 24,300 and 24,575.

“The preferred strategy remains to buy on dips in the 24,100-24,000 zone with a stop-loss below 24,000. The unfilled gap between 23,890 and 23,820 remains relevant only if the index decisively breaks below the 24,000 support,” a market expert stated.

Among the Nifty constituents, Eternal, Kotak Mahindra Bank and Bajaj Finance emerged as the top gainers, providing a strong boost to the benchmark indices.

Sectorally, realty stocks led the market recovery, with the Nifty Realty index rising nearly 2 per cent. Private banking and IT stocks also witnessed buying interest. Meanwhile, the Nifty PSU Bank and Nifty Metal indices posted the least gains among the major sectoral indices.

Experts said that the broader market sentiment improved as investors stepped in to buy beaten-down stocks following the recent correction, helping the benchmark indices regain some of their lost ground.

“The near-term outlook is likely to hinge on the direction of global yields, energy prices and geopolitical developments, with sustained stability needed to keep earnings momentum and foreign inflows intact,” as per the expert.

Meanwhile, commenting on Bank Nifty a sustained breakout above 57,700–57,800 could strengthen buying momentum and pave the way for an advance towards the 58,000 region, which remains the next major resistance zone.

“On the downside, the 57,200–57,000 region remains the stronger support zone. Holding above this area will be important to sustain the prevailing recovery structure, while a decisive break below 57,000 could weaken the near-term bias and invite fresh selling pressure,” a market expert stated.

–IANS

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