The Indian equity benchmarks rebounded strongly from intraday low levels in noon deals on the back of gains in ICICI Bank, HDFC, Kotak Mahindra Bank, State Bank of India and Axis Bank. The benchmarks staged a gap down opening wherein the Sensex fell as much as 501 points and Nifty 50 index dipped below its important psychological level of 14,200. However, buying in banking and metal shares helped Sensex jump as much as 939 from the day's lowest level and Nifty 50 index moved above 14,400 after falling below 14,200 mark in morning deals.
The Sensex ended 375 points or 0.79 per cent higher at 48,081 and Nifty 50 index climbed 110 points or 00.77 per cent to settle at 14,406.
"The Nifty has formed a bullish piercing pattern by closing above the median of the previous day, which was at 14,367 levels that can be found at the end of a downtrend. Based on it, our strategy should be to create long positions with between 14,350 and 14,300 levels. On the higher side, we would see the levels of 14,530 and 14,580. A close above the levels of 14,580 would validate the formation of bullish reversal and in that case, the Nifty may rally to even 14,850 levels where it has the biggest hurdle. On the other side, 14,250 and 14,150 would be major supports," Shrikant Chouhan, executive vice president, equity technical research at Kotak Securities said in a statement.
He advises keeping a final stop loss at 14,150 for creating any long position and focus should be on financials and metal stocks.
Banking share witnessed strong buying interest during the session on account of a short-covering rally after witnessing bouts of heavy selling in the previous two sessions. The gauge of 12 banking shares on the NSE - Nifty Bank index jumped as much as 722 points to hit an intraday high of 31,834.50.
Metal, media, financial services and realty shares also witnessed buying interest.
On the other hand, FMCG, information technology and pharma shares witnessed selling pressure.
Mid- and small-cap shares also witnessed buying interest as Nifty Midcap 100 index rose 0.5 per cent and Nifty Smallcap 100 index rose 1 per cent.
Among the individual shares, ICICI Securities rallied as much as 8.45 per cent to hit an intraday high of Rs 460 after its profit in quarter ended March 2021 more than doubled to Rs 329 crore from Rs 154 crore during the same quarter last year, registering an increase of 115 per cent. Its revenue from operations rose 54 per cent to Rs 739 crore from Rs 480 crore in the year ago period.
ICICI Bank was top Nifty gainer, the stock rose nearly 4 per cent to Rs 579. Wipro, JSW Steel, Tata Steel, HDFC, Bharat Petroleum, Adani Ports, HDFC Bank, Bajaj Auto, Kotak Mahindra Bank, State Bank of India, Bajaj Finance and SBI Life also rose between 2-3.5 per cent.
On the flipside, Shree Cements, Titan, Tata Consumer Products, Hindustan Unilever, UltraTech Cement, Nestle India, Tech Mahindra, Asian Paints, Mahindra & Mahindra, Tata Motors, HDFC Life and IndusInd Bank were among the losers.
The overall market breadth was positive as 1,742 shares ended higher while 11,178 closed lower on the BSE.