MUMBAI: Indian shares rose on Monday for the third straight session in line with global equities, which have risen from oversold positions in hopes of lowering inflationary expectations as central banks raise rates to tame spiral long prices.
Nifty and Sensex rose 1.9% each to 16661.4 and 55,925.74 buoyed by domestic and foreign institutional buying amid a holiday for US markets. The IT pack like Infy and TechMahindra led the gains rising 3.5-4.5% even as banks underperformed with Kotak Bank falling over 2% to Rs 1,902.8.
FIIs purchased a provisional Rs 502.08 crore of shares, while DIIs bought a provisional Rs 1,524.5 crore worth of equities. FIIs also bought index futures -- Nifty and Bank Nifty -- contracts worth Rs 1,806 crore while fear gauge India Vix cooling off by 7% to 19.98.
The market in the past few sessions has made higher highs and higher lows with the resistance of 16500 , now becoming immediate support. Resistance is at 16700 which if broken could extend the bounce to 16900-17000.