Banking stocks were among the top performers with IndusInd Bank zooming 7%, followed by a 6% jump recorded by State Bank of India. ICICI Bank, HDFC Bank, and Axis Bank followed close.
Dalal Street marched higher on the first trading session of the week. Bulls took control and pulled Sensex 1.7% higher to end at 49,580, while the Nifty 50 closed at 14,923. Banking stocks were among the top performers with IndusInd Bank zooming 7%, followed by a 6% jump recorded by State Bank of India. ICICI Bank, HDFC Bank, and Axis Bank followed close. Broader markets mirrored the up-move. Among NSE Sectoral gainers, only Nifty Media and Nifty Pharma closed with losses. India VIX, the volatility gauge closed in the red, falling 3.25% during the day.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities –
“A long bull candle was formed on the daily chart, which indicate a display of sharp upside momentum near the overhead resistance. Nifty is repeatedly testing key overhead resistance and also broader upper range of around 14950-15000 levels. The short term trend of Nifty seems to have reversed up firmly, after a reasonable weakness of the last few sessions. Having placed at the crucial overhead resistance around 15,000 levels, there is a possibility of volatility emerging or minor downward correction from the highs in the next few sessions and that is going to be a buy on dips opportunity in the market. Immediate support is placed at 14,780 levels.”
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments –
“The markets have zoomed past a resistance block of 14,850 and this should keep the Nifty bullish. Strong support lies at 14,700 and the index would turn bearish if we break this level on a closing basis. If the Nifty can keep above 14,850, we can claim higher levels of 15000 and then 15,200. If we break 14,700, the markets could fall further to 14,400.”
Vinod Nair, Head of Research at Geojit Financial Services –
“Indian indices soared with solid gains led by banking, metal and auto stocks due to fall in infection cases. The market expects a rapid fall in daily reported Covid cases which helped to ease concerns over extended lockdowns and sharp correction in FY22 estimates. Banking stocks took a breather as it helped in soothing asset quality concerns.”
Manish Shah, Founder, Niftytriggers –
“Bulls showed massive strength for the day. This pattern appears below the resistance at 15050-15100 points. Nifty still needs to close above the resistance at 15050-15100. This is the barrier that has halted many advances recently in the last couple of weeks. MACD signal line has crossed above zero and MACD is in a buy mode and Nifty has again moved above 50 period moving average. The crucial piece of evidence need is a high conviction close above 15050-15100. Once this happens we can brace for a rally to the prior swing high at 15430-15450. A breakout should signal a sharp rally over the next couple of weeks.”
Mohit Nigam, Head, PMS, Hem Securities –
“Markets had started this week with strong momentum amid continued fall in of Covid cases, accompanied by better-than-expected macro-economic data. If the markets break the level of 15,000 and sustain above the level, then this bullish rally might be extended in Nifty 50. IndusInd Bank, SBI and ICICI Bank were among the top gainers in Nifty 50 while Cipla, Larsen and Bharti Airtel were among the top losers in Nifty 50 today. We maintain our buy on dips stance with next resistance at 15,000 and immediate support around 14,800.”