Indian equity markets ended higher for the fourth consecutive day amid positive global market sentiments and gains in index heavyweights like Reliance, Infosys and TCS. The S&P BSE Sensex closed at 55,397, up 630 points or 1.15%, while the Nifty50 index reclaimed the 16,500-mark to end at 16,521, up 180 points or 1.1%. Sectorally, the Nifty IT index climbed 3%, followed by the Nifty FMCG. On the negative side, the Nifty Realty index fell 0.29%. The broader market, however, underperformed the frontline indices. Bulls are expected to dominate Dalal Street in the near term as the market is likely to remain upbeat in the coming session, according to analysts. Investors must use any dip as a buying opportunity to accumulate quality stocks, they said.
Deepak Jasani, Head of Retail Research, HDFC Securities
“Nifty broke out upwards with an upgap on Wednesday but closed near the intra day lows, suggesting profit taking at highs. While volume expansion is supportive of further upmove, we will have to see whether the upgap made by Nifty at 16359 is filled or not in the next 1-2 days. Nifty could now remain in the 16359-16646 band for the near term.”
Osho Krishan, Sr. Analyst – Technical & Derivative Research, Angel One
“The broad-based buying interest has undoubtedly boosted the overall market sentiments, though the consecutive buying spree in the week could attract some profit booking in the near period. Technically, the index is inching towards the previous swing high of 16660-16800 odd zone, which might trigger a temporary halt for the bulls. However, the undertone is likely to remain in favor of the bulls, wherein the recent unfilled gap of 16360-16490 is expected to provide a cushion to any minor correction, followed by the sacrosanct support zone of 16200. While on the contrary, the mentioned swing high is the next potential resistance for the index in the comparable period.”
“Going forward, our market is likely to remain upbeat in the near term, wherein any minor dip could be seen as an opportunity for the bulls to add long positions. We might also witness major traction outside the indices in the broader market space. Hence, it’s advisable to keep focusing on such potential movers, which are likely to provide better trading opportunities. Meanwhile, keeping a close tab on global and domestic macro developments is advisable.”
Om Mehra, Technical Associate, Choice Broking
“The chart pattern suggests that if Nifty would sustain 16400 levels then any dip would be a buying opportunity as it would lead the index towards 16650-16700 levels. Indicators such as RSI and MACD suggest strength in the coming days. The recovery in Nifty from their recent lows indicates the resilience of the markets and its potential to scale higher. OI Data indicates, on the call side the highest OI witnessed at 16600 followed by 16700 strike prices while on the put side, the highest OI was at 16400 strike price. Bank nifty has support around 35450 while resistance is placed at 36500. Currently riding against the trend must be avoided and one should look for blue chip stocks for long term investment.”
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
“The market is mirroring the mood in global equities and notched up significant gains on strong buying in IT and select media and realty stocks. Basically, the market is hoping that the US Fed may not be aggressive in hiking rates in its next meeting, while falling commodity & crude oil prices too have moderated the bearish trend in recent sessions. On the technical front, the Nifty has formed a small bearish candle near the important resistance level. Due to markets being in an temporary overbought situation, we could see some profit booking at higher levels. For bulls, 16550 and 16600 would act as an immediate resistance zone. On the flip side, 16450-16400 could be key support levels.”