Bulls help Sensex, Nifty stage late recovery to end in green; can pull-back rally extend further?

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September 21, 2021 4:19 PM

S&P BSE Sensex surged 514 points or 0.88% to end at 59,005 while the NSE Nifty 50 index jumped 165 points or 0.95% to close at 17,562.

On Tuesday, the benchmark 6.10%-2031 bond yield ended at 6.2281% against 6.2087% in the previous session.Sensex fell 410 points on the back of heavy selling in IT, financials and telecom stocks, in line with weak global trends amid a rebound in US bond yields.

Bulls regained control on Dalal Street in the dying hour of trade on Tuesday, helping Sensex and Nifty rebound from lows. S&P BSE Sensex surged 514 points or 0.88% to end at 59,005 while the NSE Nifty 50 index jumped 165 points or 0.95% to close at 17,562. Bajaj Finance was the top Sensex gainer on closing, up 5%, followed by IndusInd Bank, Tata Steel, and ITC. Maruti Suzuki India was the worst-performing Sensex constituent, falling 2.5%, followed by Bajaj Auto, Nestle India, and Power Grid Corporation. Bank Nifty staged a recovery to end at 37,235. Broader markets closed with gains, except smallcap indices. India VIX was down with losses. 

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

“After two days of sharp correction, benchmark indices witnessed a sharp pullback rally while Nifty found support at 17326 to reverse the falling trend. Technically, the texture of the sharp reversal formation near the 10 day SMA suggests further uptrend from the current level. We are of the view that while the short-term trend still looks up, uncertain global market conditions could see the Nifty within the range of 17650-17450 levels. For day traders, as long as the index is trading above 17450, a pullback rally is likely to continue up to 17600-17650 -17680 levels. On the flip side, below 17430, the uptrend would be vulnerable.”

Vinod Nair, Head of Research at Geojit Financial Services

“Domestic indices staggered during the early trading session however positive trends in the global markets comforted Indian equities to rebound during the second half. Global stocks recovered from the fears sparked by troubles in the Chinese economy, ahead of the FOMC meeting that will start later in the day. All major sectors traded in the green zone while the auto sector remained under pressure due to rising input costs and the semiconductor shortage faced by the global auto industry.”

Rohit Singre, Senior Technical Analyst at LKP Securities

“Sharp recovery has been witnessed from good support zone as mentioned and closed a day at 17562 with gains of one percent and formed a bullish candle on daily chart after two bearish candles. Now going forwards 17600-17660 will act as resistance zone also one can lock their long gains around said levels and supports are placed at 17500-17430 zone any dip near said levels will be again buying opportunity with keeping immediate stop out level below 17500 zone and overall range is coming in between 17300-17800 zone.”

Gaurav Udani, CEO & Founder, ThincRedBlu Securities –

“Nifty gave a good recovery after making a low of 17326, however, the volumes were lesser than its average. It closed at 17570, up by 170 points. It is important for Nifty to stay above 17250 else we may see a correction to 16800 levels. Traders need to be cautious, Nifty may give some sharp movements in either direction triggering stop loss in both longs and shorts. Overall the trend in Nifty will remain bullish as long as it trades above 17250.”

Sachin Gupta, AVP, Research, Choice Broking –

“Technically, the nifty50 has recovered from the immediate support around 17270 levels and sustained above 9 days SMA & Middle Bollinger Band formation, which indicates further strength for the next trading session. On an hourly chart, the nifty index has given a breakout of Falling Channel formation and showed positive crossover in Stochastic & RSI, which supports the upward trend. At present, Nifty has its crucial support at 17250 levels while resistance lies at 17650 levels.”

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