Sensex, Nifty advance rally to 6th consecutive session, consolidation likely now; Check support, resistance

Dalal Street headline indices witnessed a volatile trading session where bulls and bears engaged in a tug-of-war for most of the day only to see bulls emerge victorious at the closing bell. S&P BSE Sensex added 214 points or 0.37% to settle at 58,350 while the NSE Nifty 50 index gained 42 points to end at 17,388. Bank Nifty ended in the red While Nifty zoomed more than 1%. India VIX gave up gains in the dying minutes of trade to end 0.43% lower but continues to sit above 18 levels. Tech Mahindra was the top gainer, up 2.28%, followed by Infosys and TCS. Maruti Suzuki India was the top laggard, accompanied by Sun pharma — both down more than 2%. 

Deepak Jasani, Head of Retail Research, HDFC Securities –

Om Mehra, Technical Associate, Choice Broking –

“Technically Nifty has formed a bullish candle in the daily chart, as Index managed to hold 17300, an important psychological level. The overall structure shows that the index is likely to witness consolidation in the range of 17100-17450 in the coming sessions. Once it sustained 17520 we can expect a rally till 17750 levels. The indicators such as MACD & RSI were trading with a positive crossover on a daily time frame which suggests strength in the counter. Bank nifty has support at 37400 levels while resistance at 38400 levels. Index might face high volatility on weekly expiry day. Riding against the trend may not be beneficial for short term traders.”

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Vinod Nair, Head of Research at Geojit Financial Services –

“Amidst the geopolitical storm affecting the global markets, domestic markets moved in-line with its global peers. The global market is also concerned about recessionary risk. On the domestic front, the major trigger this week will be the RBI’s policy meeting outcome, where the market is largely expecting a 25-50bps rate hike.”

S. Hariharan, Head- Sales Trading, Emkay Global Financial Services–

“Market has rebounded strongly with a turn in the trajectory of foreign investor flows – the last 4 sessions have seen FPI inflows of nearly $1 bn. Banks and Autos have attracted strongest flows while IT has been an under-performer. Going forward, the gap in valuations between Nifty and MSCI Emerging Markets index, as well as the gap between the earnings yield of Nifty vs 10 year G-Sec yield, would be adverse factors and we can expect market returns to be more muted. A pull-back towards the technical support at 200-day moving average at 17000 is possible.”

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