Return Rally pushes Nifty above key pivot in Fed-heavy week

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Stock market extends gains while Fed events line up

By S Jha

New Delhi, August 20: Nifty almost closed at the key level of 24700 on Tuesday. Sensex went higher with over 375 points, and Bank Nifty also rose sharply on Tuesday.

The global equity markets are extending their gains as part of a ‘Return Rally’. After the selloff due to the recession fear, the fresh set of data brought the bulls back in the game.

The US bourses are continuing with second week of gains. The ‘Return Rally’ in the US has been led by the tech stocks.

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The IT stocks led the initial charge on the street. Tata Consultancy Services was on the radar of the bulls over the weekend. The scrip had come close to a key pivot.

TCS made swift gains to touch the level of ₹4560 on Tuesday. The IT behemoth is now trading at a level never seen.

Wipro was giving a close company to TCS in the early sessions of the day. The latter parts of the session saw Tech Mahindra sharply rising.

Nifty with ease cruised past its resistance of 24693 early in the day. Afterwards, the 50-share index saw much higher level. The index closed above the resistance level.

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Among the blue chips, Hero Moto Corp was in a bulls’ zone. The two-wheeler giant has seen the level of ₹5980 in the recent past. The scrip squeezed above ₹5400 on Tuesday.

But the day was dominated by the two life insurance giants in the Nifty-50. SBI Life was once more trending. The scrip was higher by over five per cent during the day.

HDFC Life too trended during the day. Notably, SBI Life and HDFC Life go trending in tandem on the bourses.

The brokerages are minting moolah with the rising number of dmat accounts, as well as rising number of traders. Angel Broking was sharply higher by 16 per cent on Tuesday.

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The financials made smart moves on the bourses. Shriram Transport Finance has been trending for the past few weeks. After retracement, the financial giant once again took the centre stage in the court of the bulls.

Motilal Oswal Finance and Poonawala Fincorp also made decent gains on the street. Bajaj Fincorp, IndusInd Bank, Axis Bank, and others also gave winning punches.

This week is marked by two events in the US around the Federal Reserve. The investors will be watching out the two events for the cues and directions of the market.

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The first Fed event is on Wednesday, and the second is over the weekend. The market participants expect the indices to stay rangebound ahead of the emerging cues from the US Fed.

Disclaimer: This article makes no recommendation for buy or sell of shares of any company.

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