On the charts as well bulls were seeing asserting control and analysts believe there could be more upside in the offing.
On Wednesday morning, SGX Nifty was up in green again, hinting at a positive start for Sensex and Nifty.
(Representative image/ Reuters)
Having gained 3,400 points in just two sessions, S&P BSE Sensex now sits just below the 50,000 mark. The broader 50-stock NSE Nifty reclaimed 14,600 and could again attempt to summit 15,000. The return of the bullish sentiment on Dalal Street was helped by the Union Budget, where nothing that could harm the equity markets was announced. On the charts as well bulls were seeing asserting control and analysts believe there could be more upside in the offing. On Wednesday morning, SGX Nifty was up in green again, hinting at a positive start for Sensex and Nifty.
Technical take: Nifty has formed a long bull candle with opening upside gap, according to Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “This pattern could mean a sharp bullish reversal in the market post the Budget and this action hints at a possibility of faster upward retracement of the recent downward swing,” he added. The recent bearish reversal pattern is likely to be negated by the end of this week.
Support and resistance levels: Sensex and Nifty remained elevated despite profit booking during the day. “The next level to watch out would be 14750/50185 followed by 14900/50900 levels. There should be a strategy to buy between 14300/49000 and 14200/48700 levels. Traders & investors need to keep the last stop loss at 14100/48400,” said Shrikant Chouhan, Executive Vice President (Equity Technical Research) at Kotak Securities. He further advised investors to remain defensive as indices near previous highs.
Global Watch: Wall Street recorded another day of healthy gains on Tuesday with Dow Jones surging 1.57%. NASDAQ gained 1.56% and S&P 500 jumped 1.39%. However, the tale was not the same among Asian peers. Shanghai Composite and Hang Seng were down in the red along with KOSDAQ. Meanwhile, KOSPI, TOPIX, and Nikkei 225 were up in the green.
FII and DII trends: Foreign Institutional Investors (FII) were net buyers of domestic equities on Tuesday, pumping in a massive Rs 6,181 crore. Domestic Institutional Investors (DII), on the other hand, were net sellers as they pulled out Rs 2,035 crore.