Stock Market Today: Bulls Return Sighting Oversold Market Gains

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Stock Market Rebounds Amid Hectic Buying in Oversold Scrips

By S Jha

New Delhi, March 5: Stock market was trading firm after two hours of trade on Wednesday. Nifty retained the strength to make further gains. Bank Nifty also was trading firm in early trades.

All-round gains in the stock market came on the back of weeks of selloffs. Frontline stocks led the return of the bulls to the street.

Nifty was trading at 22780 in the early trades. After nine consecutive sessions of losses, the 50-share index had taken pause in falling yesterday. Market veterans such as Ramdas Agarwal told television channels that the stocks are oversold. He argued that the investors may soon return to buy into stocks.

StockEdge in its morning commentary on Wednesday posted in its Telegram channel that “the technical indicators remain deeply oversold, but weakness in the US markets is adding to the pressure. Even if Indian indices show signs of a rebound, the unfavourable global environment is holding them back.”

It also stated that for the Nifty “22200 and 22500 are the immediate resistance levels to work with while 21800 remains important for now. The studies continue to hint at a rebound as soon as the global markets stabilize.”

All the sectoral indices were trading with gains in the early trades. Utilities post the maximum gains. Power, Infra, and realty indices were the next three big gainers on Wednesday.

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The IT stocks were also trending in day’s trades. The midcap IT stock Coforge led the gains on the street. While shares of Coforge were trading with gains of almost 10 per cent, HCL Technologies led the rally in the large cap.

Shares of Mahindra and Mahindra led the gains in the auto stocks. Shares of Eicher Motors were also seen to be in heavy demands. Shares of Tata Motors also showed signs of strength. The auto stocks were hammered in the recent market crash.

The stock market was also trading firm on the back of Chinese Premier Li Qiang announcing fresh commitment for stimulus packages. The metal stocks were reacting positively to the statement of the Chinese Premier.

(Disclaimer: This article makes no recommendation for any kind of trades in the stock market)

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