Nifty above 22,600, Sensex gains 2,303 pts; all sectors in the green

June 05, 2024 / 03:51 PM IST

Above 22,800, Nifty may rise to 23,000: Mandar Bhojane, Research Analyst at Choice Broking

Indian benchmark indices erased some of the previous day’s losses and ended higher, with Nifty closing back above 22,600. After a sharp correction following the Lok Sabha election results, where it fell 8.5%, the Nifty surged 6.16% from yesterday’s low, showing a strong recovery following Prime Minister Modi’s speech. The Sensex increased by 2,303.19 points or 3.20 percent, closing at 74,382.24, while the Nifty rose by 735.80 points or 3.36 percent, ending at 22,620.30.

Nifty’s strong recovery from yesterday’s low included a gap-up opening of 240 points. The sharp rebound in the second half of the session, closing above the 22,600 level, indicates a potential bullish reversal. If the price closes above the 22,800 level, it could potentially rise to 23,000 and above in the coming days. On the downside, 22,000 and 21,800 will act as immediate support levels.

All BSE Sensex and Nifty50 stocks ended in the green. All sectoral indices finished positively, with Auto, Bank, FMCG, Metal, Telecom, and Media sectors up 4-6 percent. The BSE Midcap index rose 4 percent, while the Smallcap index gained 3 percent. India VIX dropped by 29.4 percent intraday and settled at 18.885. According to the options data, the highest open interest (OI) on the call side is at the 22,800 strike price, followed by the 23,000 strike price. On the put side, the highest OI is at the 22,200 strike price.