BSE Sensex and NSE Nifty 50 settled one per cent higher on Tuesday, on the back of positive global cues. BSE Sensex jumped 579 points or 1 per cent to 59720. Nifty 50 crossed 17900 intraday but declined over 100 points from day’s high to close at 17816. Bank Nifty advanced for two days in a row, gaining 1.4 per cent to finish trade at 41,468. Index heavyweights such as ICICI Bank, Housing Development Finance Corporation (HDFC), HDFC Bank, Sun Pharma, and Axis Bank among others contributed the most to the indices’ gain. In broader markets, S&P BSE MidCap outperformed equity frontliners, gaining 1.7 per cent or 422 to settle at 25,940. While S&P BSE SmallCap added 1 per cent or 293 points to finish trade at 29,443. India VIX, the volatility index, fell 5.72 per cent to 18.80 levels. 

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

Relief rally continued for the second straight session, which is indicative that investors are finding local stocks attractive after every short-term correction. Even as there are talks of global recession at some point, the Indian economy is holding up really well in times of uncertainty, which is prompting investors to bet on our growth story. However, Nifty, near the 20-day SMA (Simple Moving Average), has formed Hammer candlestick formation which is broadly negative for the market. We are of the view that the short term support has shifted to 17700 from 17500. If the index slips below 17700, accelerated selling pressure will drag it down to 17600-17500 levels. On the flip side, above 17700, the index could retest the level of 17950-17800.

Rupak De, Senior Technical Analyst, LKP Securities

Nifty had started to gap up and remained range bound during the day. On the higher end, 17900 has acted as resistance leading to a close near the day’s low. The trend is likely to remain positive as long as it sustains above 17700. On the higher end, a move above 17900 may induce a rally towards 18100 and higher.

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Kunal Shah, Senior Technical Analyst, LKP Securities

The Bank Nifty index continued its volatile move ahead of the US FED policy but remains in a buy mode as long as it holds the support of 40,500 on the downside. The index immediate upside hurdle is placed at 42,000 and once taken out on a closing basis it opens up the room for 43,000-43,600 on the upside. The index is likely to consolidate between 40,500-42,000 for one more day before starting a trending move on either side.

Vikram Kasat, Head Advisory, Prabhudas Lilladher

Crude oil prices and Nifty returns have a curvilinear correlation – Brent is below $95 per barrel, So crude oil prices and Nifty performance are positively correlated. Positive cues from the bullish overnight setup in US markets also fear gauge index India VIX eased nearly 6%. FIIs were net buyers yesterday and the Dollar index was stable is also a reason for the rebound in markets today.

Ajit Mishra, VP – Research, Religare Broking

Markets gained for the second consecutive day amid supportive global cues. The benchmark witnessed a gap up start and continued to trade with positive bias throughout the day. The rally was largely led by healthy buying across sectoral indices wherein pharma, realty, auto and metals were the top gainers. The broader markets too ended in the positive range of 1.1-1.4%. Consequently, The Nifty ended at 17,816.25 levels, up by 1.1%. We believe all eyes will be on the FOMC meeting scheduled tomorrow wherein there are high expectations of the Fed increasing the rates by 75bps. So, the FED rate decision will dictate the market trend going ahead. Meanwhile, investors will continue to monitor global cues, crude and currency movement.