Nifty rebounds after Nomura upgrade

New Delhi: Domestic equities rebounded into positive territory on Wednesday after Nomura upgraded its rating on the Indian Markets to ‘Overweight’, says Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.

Nifty recovered from lower levels amid buying in index heavyweights and closed with marginal gains of 52 points at 19716 levels. Broader market outperformed with Nifty Midcap 100 and Nifty Smallcap 100 up 0.8 per cent and 1 per cent respectively, he said.

Majority of the sectors ended in green with Pharma, FMCG, and PSU Bank being top gainers. Markets saw some respite after the previous day’s sell-off but the pressure still continues given several concerns regarding rising interest rates, crude oil prices, and growth concerns in China, he added.

Rupak De, Senior Technical analyst at LKP Securities said that the Nifty showed a strong recovery during the day, finding support at the 50EMA.

The day concluded with the formation of a bullish engulfing pattern. On the upper side, resistance is situated at 19,750. A clear breakout is necessary to anticipate a substantial rally in the index. A decisive move beyond 19,750 could potentially push the index towards 19,900. On the downside, support is established at 19,600.