Wipro leads Sensex rally

BSE Sensex was up 402 points at 66,481 on Wednesday, and Wipro was up more than 3.5 per cent.

The fact that Nifty is just 2.5 per cent away from the all-time high indicates the strength and resilience of the market, says V.K. Vijayakumar, the Chief Investment Strategist at Geojit Financial Services.

Even though FIIs are sustained sellers in the market, buying by DIIs, HNIs and retail are counterbalancing the selling and supporting the market. Safety is in large-caps, he added.

Stock market has a unique ability to climb many walls of worries. If the undertone of the market is bullish, the market will climb worrying walls which may appear formidable. It is important to appreciate the fact that even in the midst of the West Asian crisis, markets are resilient, globally, he added.

The fundamental support to the market comes from the resilience of the US economy, the declining US bond yields and the hope that the Israel-Hamas conflict will remain a localised crisis which will not impact crude prices. However, investors should remain cautious since the situation taking a turn for the worse cannot be ruled out, he said.

Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher said the Nifty recovered from the previous session’s mayhem to indicate a strong pullback closing near the 19,700 zone and ease out the sentiment to some extent.

Further, still maintaining a cautious approach, the index needs to close above the 19,800 levels to overall improve the trend and expect further rise. The support for the day is seen at 19,550 levels while the resistance is seen at 19,800 levels, Parekh said.