Sensex ends higher for second straight day; Nifty may rally to 17600 if it closes above 17250

Nifty gained for the second consecutive session on Tuesday amidst low volumes and aided by positive global cues.

sensex, nifty
Nifty rose in today’s trade taking over the positive baton from overnight strong positive cues at Wall Street

BSE Sensex and Nifty 50 ended in green for the second consecutive day on Tuesday. Sensex ended 477.24 points or 0.83 per cent higher at 57,897.48, while Nifty 50 index surged 147 points or 0.86 to settle at 17233.25. Stocks such as Reliance Industries Ltd (RIL), Infosys, HDFC Bank, Asian Paints, HDFC Bank, L&T contributed the most to the indices gain. Broader markets also particpated in today’s rally. S&P BSE MidCap index added 0.95 per cent or 231.90 points to end at 24,653.89, while S&P BSE SmallCap index surged 1.43 per cent or 408 points to finish trade at 28,923. India VIX cooled off3.75 per cent to end at 16.48 level.

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

Domestic market is drawing strength from upsurge in global equity indices, which have been steadily moving up in recent sessions after correcting sharply on concerns related to the Omicron variant, likely interest rate hikes in key developed economies going ahead and the rising inflation world wide. After a long time, the Nifty succeeded to close above the 20 day SMA which is broadly positive. The short term texture is bullish but due to gains in recent sessions, bulls may prefer to take a temporary pause near 17275-17300 levels. Trading setup suggests a quick intraday correction if the Nifty trades below 17180, and below the same the correction wave could move up to 17100-17160 levels. On the other hand, above 17200, the index uptrend continuation formation will continue up to 17300 and further upside could lift the index up to 17370.

Ajit Mishra, VP – Research, Religare Broking

Markets are taking cues from their global counterparts and seeing a rebound amid the news of rising COVID cases domestically and restrictions announced by a few states. While all the sectors are contributing to the move, the underperformance of the banking pack is still hurting the sentiment. We recommend focusing on the sectors which are trading in sync with the benchmark while keeping a check on leveraged positions. The upcoming monthly expiry of December month derivatives contracts would further add to the volatility.

Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty gained for the second consecutive session on Dec 28 amidst low volumes and aided by positive global cues. Nifty opened gap up and kept rising before a V shaped fall and recovery happened post 1430 Hrs. At close, Nifty was up 0.86% or 147 points at 17233.2. Nifty rose for the second consecutive session with advance decline ratio rising sharply to much above 1:1 even as volumes remain on the lower side. This reflects the lower presence of institutional players due to which traders are having a field day. Nifty will now face resistance in the 17298-17379 band, while 17155 could provide support. The broader markets could face some serious profit taking towards this weekend.

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

While the Nifty managed to touch 17250, it closed below it. We need to keep above 17250 for a bullish trend to emerge and sustain. The index can scale up to 17600 if we close above 17250. The market has a good support at 16800.

Prashanth Tapse, Vice President (Research), Mehta Equities

Nifty rose in today’s trade taking over the positive baton from overnight strong positive cues at Wall Street. The positive take away was that Nifty maintained its uptrend despite continued surge in global coronavirus cases. The strength in today’s trade suggests that the street seems quite confident that it can overcome the challenges of the Omicron variant. Technically, the ongoing upbeat bullish mood shall take Nifty to 17500-17750 zone with an interweek-perspective. That said, the optimism could reverse and cause a nasty New Year’s hangover only if Nifty slips below 16833 mark.

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