Deal Impact: What happened in the last 30 minutes that increased confidence in the market and also raised expectations for the next session

News Topical, Digital Desk : The trade deal between India and the US has buoyed the stock market. Investors' and traders' confidence further strengthened in the final 30 minutes of the market. In fact, despite such a surge, there was no profit-taking effort in the final minutes, indicating investor confidence in the market. The Nifty index closed with a gain of more than 80 points from the day's low of 25,641, recorded in the first hour of trading.

The Nifty 50 index gained 639 points to close above 25,727 today. The Sensex gained 2,073 points to close at 83,739.

What was special today?    With the beginning of the last 30 minutes of trading, the market saw a slight decline, and the index slipped from 25773 to around 25725. However, after this 50-point drop, the market did not see any further decline, and the index closed above this level. According to Anuj Singhal, Managing Editor of CNBC Awaaz, today's closing was quite impressive. He states that macro rallies typically last three days. Even assuming that the market gained some hope on Monday and Monday's gains are factored into this trend, a rise can be expected for tomorrow, Wednesday, as well. The gap formed at 26341 on Tuesday morning is likely to be tested again. However, whether the market will fail this test remains to be seen. According to him, the best thing today was that the market crossed all moving averages in a single day and closed with a strong gain. The market crossed the 200 DMA upon opening. It then crossed the 20 DMA, and on the decline, it defended the 50 DMA and registered another rise. He clearly stated that in such a situation, some confidence can be placed on this market. 

What signals will the market react to now? According to Sachin Shah, Executive Director and Fund Manager at MK Investment Managers, the trade deal is very positive news. Now that everything has settled down, the market will react to basic signals, including company results, valuations, and demand signals. He believes that macro conditions have turned favorable, so the market will now keep an eye on these signals. 

How was the market performance? The market saw a broad rally today, with all sector indices closing in the green. Most of these sector indices gained more than 2 percent. Only the FMCG sector gained less than 1 percent. Meanwhile, the IT, media, and oil and gas sector indices rose between 1 and 2 percent. The realty index closed up nearly 5 percent, and the chemical sector index closed up nearly 4 percent. All other sectoral indices rose between 2 and 3.5 percent.

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