Mumbai, May 6 (IANS) Indian equity benchmarks staged a strong late-session rally on Wednesday, with both the Nifty and the Sensex closing sharply higher as global cues turned favourable following a steep drop in crude oil prices.

The Nifty climbed 298.15 points, or 1.24 per cent, to settle at 24,330.95, while the Sensex surged 940.73 points, or 1.22 per cent, to end at 77,958.52.

Commenting on Nifty technical outlook, experts said that the markets staged a strong rebound, with Nifty closing above the immediate resistance at 24,300 levels.

“The index has established a strong support zone around 24,000, which aligns with both the 21-DMA and 50-DMA,” an analyst stated.

“Additionally, Nifty has broken out of a symmetrical triangle pattern on the daily chart, indicating a positive shift in the short-term structure with potential upside towards 24,500 levels,” as per the expert.

The rally gathered momentum in the second half of the trading session after reports suggested a potential breakthrough in diplomatic talks between the United States and Iran.

On the equities front, gains were led by heavyweight stocks such as InterGlobe Aviation, Tata Motors Passenger Vehicles, and Shriram Finance, which emerged as the top performers on the Nifty index.

Broader markets mirrored the upbeat sentiment, with the Nifty MidCap index advancing 1.76 per cent and the Nifty SmallCap index rising 1.93 per cent.

Sectorally, banking and real estate stocks led the rally. Indices tracking PSU banks, private banks, banking stocks and realty companies outperformed the broader market, benefiting from improved risk appetite.

In contrast, the FMCG sector lagged behind, emerging as the worst-performing segment of the day.

Experts said that the sharp fall in crude prices, coupled with optimism over easing geopolitical tensions, provided a strong tailwind to domestic equities, helping markets close near the day’s highs.

“With input cost pressures and FX risks still present, a selective investment approach is advisable,” an analyst explained.

–IANS

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