The Indian equity benchmarks snapped their five-day losing streak led by gains in Reliance Industries, Hindustan Unilever, ICICI Bank, ITC, Infosys and Bajaj Finance. The benchmarks staged a gap down opening wherein the Sensex fell as much as 630 points and Nifty 50 tumbled below its important psychological level of 14,400. However, the benchmarks staged a strong recovery in afternoon trading after 10-year US bond yield fell 2.2 per cent to 1.691 per cent. Rising bond yields in US stoked fears of foreign fund outflows from emerging markets due to which markets were rattled in the previous session.
The Sensex ended 642 points or 1.3 per cent higher at 49,858 and Nifty 50 index rallied 186 points or 1.28 per cent to close at 14,744.
“The market witnessed some swift recovery from its short-term support around the Nifty level of 14,400. The Nifty is expected to move in a range of 14,600-14900, and it’s going to be crucial for the short-term scenario to sustain above 14,400. Technical evidence is still aligned to support a range-bound trading activity to continue,” Ashis Biswas, head of technical research at CapitalVia Global Research told NDTV.