Stock markets, which opened higher today taking positive cues from most of the emerging markets as the US Dollar index slipped below the 102 mark, settled with decent gains, mainly supported by buying interest in select index majors. After a gap-up start, the markets hovered in a narrow range and managed to close around the day’s high.
In the absence of any major trigger, participants continued with stock-specific trading approach, wherein counters from banking, auto, metal and FMCG remained on the traders’ radar. The Nifty managed to pick some buying momentum in the concluding hour to close tad below the 8300 mark at 8288.60, up by 52.55 points. The Sensex soared by 173.01points and closed the day at 26899.56.
Talking about the market, Sameet Chavan, chief analyst-technical & derivatives, Angel Broking, said, “The Nifty once again failed to surpass the stiff hurdle of 8300. However, today’s price action was quite encouraging as the index managed to close at the highest point of the day along with some strong momentum in the closing trades. We can now observe rising ‘5 EMA’ along with the ‘RSI-Smoothened’ oscillator on daily chart, which has been moving northwards of late.”
“We continue with our optimistic view on the market and expect a breakout beyond the immediate resistance of 8306.85. As a result, the Nifty would then extend this rally towards8400 – 8450 levels. On the other hand, 8261 – 8223 are likely to provide a decent support for the benchmark index,” he said, adding that traders are advised to keep focusing on individual stocks with a positive bias.
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Jayant Manglik, president-retail distribution, Religare Securities Ltd, said, “Participants are currently maintaining a positive yet cautious approach due to the upcoming earnings season and we feel it’ll continue for the entire month. At the same time, stocks are doing well and traders should remain focused on them and stay with trend rather trying to anticipate next directional move in the index.”