Nifty crossed the short-term resistance of 14,550 yesterday and broader markets participated in the up-move.
There could be potential for further upside in the near term.
Domestic equity benchmarks have now been gaining for two consecutive trading sessions. S&P BSE Sensex sits at 48,944 points while the 50-stock NSE Nifty is at 14,653. On Wednesday morning, cues from global peers were mixed but technical analysts believe bulls are in control on Dalal Street at this juncture. Cases of coronavirus continue to surge in India but assurance of help from global strategic partners and reduction in cases in Mumbai seem to be aiding the positivity. SGX Nifty was trading flat with a negative bias on Wednesday morning, hinting at a muted start for equity markets.
Global watch: On Wall Street, Dow Jones ended flat with a positive bias on Tuesday. NASDAQ and S&P 500 were in the red. Among Asian peers, Hang Seng was up in green, followed by Nikkei 225 and TOPIX. Meanwhile, Shanghai Composite, KOSPI, and KOSDAQ were in the red.
Technical take: Nifty crossed the short-term resistance of 14,550 yesterday and broader markets participated in the up-move. This hints at bulls taking control on Dalal Street. “A long bull candle was formed, which signal an emergence of strong buying in the market,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. With Nifty managing to hold above resistance levels and closing above the hurdle of the previous opening downside gap around 14600 levels, the index has shown strength. “This is a positive indication and signals more upside in the near term,” Shetti added.
Levels to watch out for: There is potential for upside in the near term. “Above 14550/48600 levels, we may see a pullback rally to continue up to 14700-14750/49100-49300. There is a possibility of a further upside that may continue to push the index upwards, till 14800/49800,” said Shrikant Chouhan, Executive Vice President (Equity Technical Research), Kotak Securities. On the downside, dismissal of 14550/ 48600 could open one more leg of correction up to 14485/ 48200 levels, according to Shrikant Chouhan.
FII and DII data: Foreign Institutional Investors (FII) sold Rs 1,454 crore worth of domestic securities on Tuesday. On the other hand, Domestic Institutional Investors (DII) bought Rs 1,463 crore worth of stocks.
Results today: Biocon, Tata Communications, KPR Mill, UTI AMC, SIS Ltd, Hathway Cable & Datacom, Mastek Ltd, Bombay Dyeing & Manufacturing Company are some of the firms that will be reporting their quarterly results today.