Stock Market Rally: Indian stock market investors' wealth increased by Rs 9.18 lakh crore in the past three days as the Sensex and Nifty 50 staged a sharp rebound following a rout.
The all-India market capitalisation of BSE-listed companies surged by Rs 9,18,579.57 crore to Rs 4,39,00,831.84 crore in three days (March 16 to 18), according to BSE data.
During the same period, the Sensex has jumped 2,140.21 points or 2.87 per cent. On Wednesday, the Sensex added 633.29 points or 0.83 per cent to settle at 76,704.13.
The Nifty 50 index has added 626 points or 2.7 per cent in the three days. During Wednesday's trade, the 50-share NSE Nifty surged 196.65 points or 0.83 per cent to end at 23,777.80.
Commenting on the market rally, Ponmudi R, CEO of Enrich Money said that the rally found support in mildly easing crude oil prices, even as lingering geopolitical tensions continued to cast a shadow in the background.
"Global cues remained constructive, with overnight gains in US equities setting the tone, followed by firm trends across Asian markets and positive indications from European bourses," the expert said.
Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities, said that Nifty has formed a positive candle on the daily chart. The index is currently trading above the 0.236 Fibonacci retracement level placed near 23,750, indicating a gradual improvement in the near-term setup.
It is also hovering around the 10 EMA, suggesting that immediate momentum is attempting to stabilise after the recent breakdown. However, the index continues to trade below the middle Bollinger Band.
The RSI has moved higher and is now placed near 37, indicating a recovery from lower levels. The MACD remains in negative territory, but the histogram is contracting.
"As long as Nifty sustains above 23,450 on a closing basis, the buy-on-dip strategy may remain favourable in the near term, with potential upside toward 23,900–24,050. On the downside, a break below 23,450 may weaken the recovery and bring back selling pressure," he said.
On Wednesday, India VIX declined more than 5 per cent to 18.72, reflecting further cooling in volatility, which has supported the ongoing recovery in the index.
