Sensex, Nifty end near day’s high, financial stocks rally; here’s how to trade on weekly expiry day

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March 9, 2021 4:18 PM

BSE Sensex and Nifty 50 bounced back sharply in the late afternoon deals on Tuesday to end over one per cent higher.

sensex, niftyNifty managed to close a day on a positive note after a strong volatile session at 15100 with gains of nearly one percent. Image: Reuters

BSE Sensex and Nifty 50 bounced back sharply in the late afternoon deals on Tuesday to end over one per cent higher. BSE Sensex jumped 584 points or 1.16 per cent to end at 51,025, while the NSE’s Nifty ended 142 points or 0.95 per cent at 15,098. In intraday, Sensex hit day’s high of 51,112, while NSE’s Nifty touched 15,126.85. Index heavyweights such as HDFC Bank, Housing Development Finance Corporation (HDFC), ICICI Bank, Kotak Mahindra Bank contributed the most to Sensex’ up move. The broader market underperformed the equity benchmarks. S&P BSE MidCap index fell 0.66 per cent or 137 points to 20,512, while the S&P BSE Small Cap index lost 0.41 per cent or 86 points to end at 20,982. On account of Mahashivratri, equity markets will remain closed on Thursday. According to analysts, markets will be volatile ahead of the weekly expiry tomorrow.

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

The market has continued being sluggish! We have not been successful in getting past the 15300 which is the upper end of Nifty’s current trading range. Neither have we broken down. This is a classic case of range bound movement where the index is taking time to decide on its next course of direction. Until one end of the range is taken out, patience would be the best virtue to exercise as any hasty decision could result in stops being triggered.

Jay Thakkar, VP and Head of Equity Research at Marwadi Shares and Finance Ltd

Nifty has provided a breakout at 15050 levels, we believe from here Nifty can climb to the 15250 levels. Tomorrow being a weekly expiry we expect Nifty to close within the 15150-15200 range. On the lower side, 14950 is the short-term base, if not broken we stay on the positive side. Banknifty has closed above the 35500 levels which shows the trend is positive in the short term. 36500 levels is the major medium-term reversal level, if crosses Banknifty will make all-time highs however if those highs don’t take off then we will continue to see consolidation. Nifty-IT provided a major breakout on the higher side supported by TCS and Mindtree which is providing support to Nifty.

Binod Modi, Head Strategy at Reliance Securities

In our view, rising crude prices, a surge in bond yields and weakening INR could be near term risks for domestic equities, which have already resulted in FPIs’ outflow in recent days. However, we continue to believe that the recent rise in bond yield is discounting a faster recovery in economic growth and this is unlikely to move northward beyond a point. However, the spread of over 470bps between India’s GSec Yield and USA Treasury Yield still offers comfort. Given the continued rebound in high-frequency key economic indicators in Feb’21, we believe the underlying strength of domestic equities remains intact despite the recent uptick in crude oil prices. Hence, we believe that any meaningful correction in the market should only be creating an opportunity for bargain trading as India continues to offer superior growth prospects.

Rohit Singre, Senior Technical Analyst at LKP Securities

The index managed to close a day on a positive note after a strong volatile session at 15100 with gains of nearly one per cent. Nifty managed to crossed the 15100 zones decisively which was acted as a strong hurdle previously which hints we may see some more positive move going forwards if managed to sustain above the 15100 zone on an immediate basis, strong support is still formed at the 15k mark and hurdle zone for nifty is coming near 15170-15250 zone.

Ashis Biswas, Head of Technical Research at CapitalVia Global Research Limited

The market witnessed an attempt to break above the resistance level around the Nifty 50 Index level of 15100. The expected levels of the market are likely to be in the range of 14900 and 15100, and it’s going to crucial for the short-term market scenario to sustain above the 14900 Nifty50 index level. While it is subject to further price action evolution, It is prudent to wait for a decisive breakout above 15100 and technical factors to improve before going long in the market. the traders are advised to refrain from building a new buying position until further improvement (A breakout above 15100).

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