Benchmark equity indices rebounded on Wednesday as investor sentiment improved after crude oil prices steadied around the $100-per-barrel mark amid hopes of renewed talks between the US and Iran.
The Sensex climbed 299.17 points, or 0.4 per cent, to close at 74,828.25, while the Nifty gained 117.80 points, or 0.5 per cent, to settle at 23,446.80.
Commenting on Nifty technical outlook, experts said that on the upside, the 23,450–23,500 zone is likely to act as the immediate resistance.
“A sustained move above 23,500 could strengthen the recovery and open the way toward 23,600, while failure to reclaim this zone could keep the index range-bound with a cautious bias,” market watchers stated.
“On the downside, 23,300 remains the immediate support zone, while the next and stronger support is placed around 23,200. Momentum indicators suggest that selling pressure is gradually easing,” analysts added.
The recovery was led by buying in metal and financial stocks. Shares of Tata Steel, Bajaj Finance and Hindalco Industries emerged as the top gainers in the Nifty index, helping the benchmarks end higher after recent volatility.
Broader markets also witnessed strong buying interest. The Nifty MidCap index rose 0.7 per cent, while the Nifty SmallCap index advanced 0.89 per cent.
Among sectoral indices, the Nifty Metal index outperformed with gains of more than 2 per cent, supported by strength in major metal stocks. The Nifty FMCG index also traded firmly and outpaced several other sectoral gauges.
On the other hand, technology stocks remained under pressure, making the Nifty IT index the worst-performing sector of the day.
Experts said that market participants said stabilising crude oil prices and easing concerns over energy costs supported risk appetite, leading to a rebound in domestic equities.
“This constructive macro backdrop supported buying interest across the market, helping domestic equities track gains in Asian peers,” experts stated.
