The Nifty rose 215.15 points, or 1.01%, to close at 21,453. The Sensex rose 689 points, or 0.98%, to end at 71,060. Foreign portfolio investors net sold shares worth ₹6,934 crore, taking their sales tally in the previous five trading sessions (excluding Saturday) to ₹32,874 crore. Domestic institutions were buyers to the tune of ₹6,012 crore.
Bank stocks underperformed the benchmarks with the Bank Nifty index gaining 0.2% to 45,106.
“Until today’s low near 21,150 is not broken, the index has the potential to retest the 21,700-21,800 zone in the coming week,” said Mehul Kothari, DVP – technical research, Anand Rathi Shares and Stock Brokers. “Overall, if 45,000-44,000 support remains intact, then we expect a sharp recovery in the Nifty Bank during February derivative series.”
Kothari said if the Nifty goes below the 21,150 level, it may see support at 20,900.
Elsewhere in Asia, China jumped 1.8% on Wednesday, rebounding from multi-year lows, on news reports Beijing may announce a stimulus package of $278 billion for its stock market. In a bid to revive the economy, People’s Bank of China’s governor Pan Gongsheng announced a cut in interest rates by 50 bps from February 5. Hong Kong too soared 3.6%.
Japan fell 0.8% after touching 34-year highs earlier on Tuesday after the Bank of Japan announced Tuesday that it would continue with its ultra-loose monetary policy. South Korea declined 0.36% and Taiwan remained flat. The pan-Europe index Stoxx 600 ended up 1.15%. It would be early to say that Nifty has bottomed out, said Aamar Deo Singh, senior vice president of research at brokerage Angel One. “The enhanced volatility is here to stay,” said Singh. “The Nifty has crucial support at 21,200 to 21,300.”
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