Nifty ends above 17500, Sensex gains 465 pts; Auto, power, metal stocks rise, PSBs decline

Indian equity markets ended higher on Monday with Nifty settling above major resistance level of 17500. The Sensex was up 465.14 points or 0.80% at 58,853.07, and the Nifty was up 127.60 points or 0.73% at 17,525.10. M&M, Coal India, Bajaj Finserv, Hindalco Industries and HDFC Bank were among the major gainers on the Nifty. The losers included BPCL, SBI, UltraTech Cement, Britannia Industries and Nestle India. Sectorally, Auto, Capital Goods, Metal and Power indices gained 1-2 per cent. BSE midcap and smallcap indices ended marginally higher.

Vinod Nair, Head of Research at Geojit Financial Services.

Sustained FII buying and falling oil prices are the major drivers for the ongoing market rally. Heavyweights played a significant role in today’s rise, while PSU banks remained under pressure following weak results of the PSB major. Western markets continued to gain after strong US job numbers allayed worries of a recession. The week ahead is busy in terms of economic data with the domestic investors gearing up for the release of the inflation numbers along with the manufacturing production data to gauge the strength of the economy.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

“Despite a small blip in early trades, bulls quickly rejuvenated and maintained their stranglehold even as other Asian peers ended mixed. FIIs, which were missing from the action over the past few months, have once again started taking exposure to local equities, thus providing a major impetus to the markets. Technically, after a muted opening, the market successfully cleared the short term resistance of 17500 which is broadly positive. Bullish candle on daily charts and intraday breakout formation is indicating a further uptrend from the current levels. For benchmark Nifty, the key support level is 17400 and above which, the breakout formation is likely to continue till 17650-17700. On the other hand, below 17400, the index could slip till 17325-17300.”

Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities

“The positive takeaway from today’s trading session was Nifty bulls clawed their way out of the hole especially after SGX Nifty indicated morning drubbing. Markets advance sharply during intra-day trades, as Nifty ended well above the psychological 17500 mark. The biggest positive catalyst is that oil hovers around 6-month low at $88.35 a barrel. The technical landscape for Nifty is likely to be positive as long as the benchmark trades above its biggest support at 17121 mark with targets at 17757 mark and then all bullish eyes on Nifty’s psychological 18,000 mark.”

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Mohit Nigam, Head – PMS, Hem Securities

Benchmark indices closed in green today with Nifty 50 closing +0.73% up and Sensex closing +0.80% up today. Good buying was witnessed in Auto, capital goods, power and metal related stocks today. We believe that falling oil prices and return of FII buying can support the growth momentum of current rally in the market. On the technical front, Nifty 50 is showing bullish momentum after the recent consolidation and this momentum may continue to 17800 levels in the short term. On the downside 17200 may remain immediate support in Nifty 50. Immediate support and resistance for Bank Nifty are 37,700 and 38,750 respectively.