Amid softening of oil prices and improved global sentiment, the Indian market made bounce back to close in the green on Wednesday. The benchmark indices gained over one per cent, aided by huge buying in midcap and sectoral stocks.
The broader Nifty50 managed to close near 16,000-mark, while the Sensex climbed over 600 points to end near 53,800.
Outperforming benchmarks, Nifty midcap gained nearly two per cent, while the smallcap index settled with around half per cent gain on Wednesday. India VIX (Volatility Index) fell over two per cent to close near 20-mark.
“Bulls are ready to take Nifty above the 16000 mark as there is selling exhaustion at lower levels. Rupee weakness is causing volatility, however, sharp fall in commodity prices and a cool-off in bond yields are supporting the market at lower levels. The good part is that FIIs are showing some buying interest after a long period of continuous selling. They are changing their gear in the F&O market as well but the market is still oversold and has good scope for a short-covering rally,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.
On the upside, 16200 looks like an immediate target, whereas the possibility of a 16500 level can’t be ruled out, he said, adding, 15700-15500 is acting as a strong support demand zone on the down side.
Meanwhile, among sectoral indices, except Oil & Gas, all Niffy indices comfortably sat in the green. Auto, FMCG, Realty and Consumer Durables, which gained between 2-2.7%, led the rally on Wednesday.
Britannia led the Nifty pack with early five per cent gain, while Bajaj twin led the 30-share Sensex. Hindustan Unilever, Eicher Motors, Asian Paints, Titan and Maruti were other top gainers.
ONGC, PowerGrid, NTPC, HDFC Life, Hindalco, L&T and Reliance were top laggards in an otherwise positive market on Wednesday.