BSE Sensex and NSE Nifty 50 rose nearly one per cent to settle at five-month high on Tuesday. BSE Sensex jumped 456 points or 0.8 per cent to end at 60571, while NSE Nifty 50 ended at 18070. Stocks of index heavyweights such as HDFC Bank, Reliance Industries, Housing Development Finance Corporation (HDFC), Bajaj Finserv, and Bharti Airtel, among others contributed the most to the indices’ gain. Broader markets underperformed equity frontliners. S&P BSE MidCap gained 0.3 per cent or 87 points to settle at 26,252, while S&P BSE SmallCap index rose 0.24 per cent or 70 points to finish trade at 29, 894. India VIX, the volatility index, fell 2.6 per cent to settle at 2.6 per cent.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Markets continued to remain in the thick of the action, aided by strong global cues and FII buying momentum. What is adding to the fizz has been the return of the FIIs into local shares over the past month or so and the falling US dollar index. If the US inflation level shows some moderation, markets may gain more ground. Technically, the Nifty has successfully cleared the short term resistance of 18000 and succeeded to close above the same which is broadly positive. On daily and intraday charts, the index is holding an uptrend continuation formation which supports further uptrend from the current levels. For Nifty, 18000 and 17925 would act as key support levels while 18150 -18200 would be key resistance levels. Below 17925, uptrend would be vulnerable and could slip till 17850-17800.
Naveen Kulkarni, Chief Investment Officer, Axis Securities PMS
The current market buoyancy globally, including in India, is based on the expectation that inflation has peaked along with softening crude prices. We believe that, to an extent, the expectation of inflation peaking is right, but one will have to keep an eye on energy prices in Europe & US with the onset of winter, which can reignite the inflation fire. The current momentum in the equity markets can sustain, but we would advise investors to raise some cash at the current levels, which can be deployed if the markets correct on either rate hikes or energy prices moving up again.
Also read: Harsha Engineers IPO opens Sep 14, GMP remains strong, check price band; should you subscribe?
Kunal Shah, Senior Technical Analyst, LKP Securities
The Nifty index surpassed the psychological mark of 18,000 and managed to close above it indicating the continuation of the ongoing momentum. The index lower end support stands at the 17,900-17,875 zone and as long as the mentioned support is held it remains in a buy mode. The index immediate resistance on the upside is at 18,100 and once taken out will open the room for 18,400-18,500 on the upside.
The Bank Nifty index witnessed a gap up opening and sustained the level throughout the day which confirms the strength. The index immediate hurdle is placed at 41000 where the highest open interest is built up on the call side and once breached will see a sharp sort covering towards 41,500-41,800 levels.
Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty breached the 17992 resistance with an upgap. It will need to build on the gains for the upward momentum to continue. The broader markets seem a bit tired. The US CPI number due in the evening and the US market reaction to the number may influence the opening of our markets tomorrow. Nifty could face resistance at 18115 (and 18308 later) while 17968 could offer support in the near term.
