A morning walk down Dalal Street | Short-term trend still favours bears

Indian markets bounced back sharply on Wednesday. The S&P BSE Sensex rallied 461 points while the Nifty50 jumped 159 points.

Benchmark indices posted the best trading session since April. The Mid-cap index closed 663 points higher to post its biggest 1-day gain ever, according to CNBC data.

The broader market indices ‘BSE Midcap & Smallcap’ outperformed the benchmark, registering healthy gains of 4.2 percent and 3.4 percent, respectively.

The structure suggests that the short-term trend is still in favor of the bears. On the downside, 10,016 shall be the target for the next leg down. On the flip side, if the bulls manage to surpass the hurdle zone of 10,480-10,500 on closing basis then there is scope for a deeper retracement.

NBFC stocks clearly remained in focus with Bajaj Finance rallying 10 percent while Bajaj Finserv gained 9.8 percent after SBI said that it will buy Rs 30,000-45,000 crore worth of assets from NBFCs to resolve the liquidity crisis.