Bulls staged a comeback on Dalal Street as benchmark indices ended near day’s high on Thursday. BSE Sensex closed 437 points or 0.79% higher at 55,818, while the NSE Nifty 50 index settled at 16,628, up 105 points or 0.64%. In the broader markets, The BSE MidCap index ended 0.04% lower, while the BSE SmallCap index added 0.6%. Sectorally, the oil & gas index added over 2% while selling was seen in auto and capital goods names. Reliance Industries (RIL) was the biggest contributor, accounting for nearly 60% of today’s gains, as its shares surged 3.6%. Central banks’ policy in India & US, which will be announced in in the next two weeks will guide the markets. ‘Buy on dips’ strategy can be used to accumulate quality stocks, said analysts.
Rupak De, Senior Technical Analyst at LKP Securities
“Nifty remained volatile with a positive bias throughout the session. On the daily chart, the benchmark index Nifty has formed an engulfing kind of pattern, suggesting bullishness. Daily RSI is in bullish crossover and rising. On the higher end, the index has resistance at 16700; above 16700, the Nifty can move towards 17000. The trend is likely to remain positive as long as it sustains above 16400.”
Palak Kothari, Research Associate, Choice Broking
“The Nifty has formed a Bullish candlestick pattern on daily time frame which indicates strength for upcoming sessions. Nifty has tested the resistance from 38.2% Fibonacci Retracement Level of its previous up move i.e., 16640 crossing above the same can show more strength in the counter. Nifty has given closing above 21-Daily Moving Average which indicates sustain above the same can show upside moment in the counter. However, the momentum indicators Stochastic was trading with a positive crossover on an hourly chart which suggest an upside journey in the counter. The Nifty may find Strong support around 16400 levels, while on the upside 16700 may act as an immediate hurdle. On the other hand, Bank nifty has support at 34800 levels while resistance at 36000 levels.
Vinod Nair, Head of Research at Geojit Financial Services
“The bounce in the market is showing signs of getting extended further supported by a mid and small-cap. High-frequency data like GST collection and PMI have shown a good start to FY23. Crude prices have declined providing an edge to the performance of the Indian market. However, a lot will depend on central bank’s policy in India & US, which will be announced in the next two weeks.”
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
“After a subdued start, markets bounced back sharply on the back of renewed optimism as investors lapped up shares of the recently beaten down IT and oil & gas stocks. In fact, Indian shares outperformed other Asian peers, which mostly ended in the red. Technically, after a muted opening, the Nifty took support near 16450 and reversed the trend. A promising reversal formation on intraday charts and a long bullish candle on daily charts is indicating further uptrend from the current levels. For day traders, 16550 would act as a trend decider level, above which the Nifty could rally till 16720. In case of any further upside, the index could rally up to 16800. On the flip side, below 16550, uptrend would be vulnerable and could falter up to 16450.”