BSE Sensex and Nifty 50 rallied over one per cent on Monday, logging smart gains, on the back of buying in select financial and IT shares.
BSE Sensex and Nifty 50 rallied over one per cent on Monday, logging smart gains, on the back of buying in select financial and IT shares. The 30-share index ended at 60,586, rising 518 points or 0.86 per cent. While NSE’s Nifty jumped over 150 points or 0.85 per cent to end at 18,068.55. Index heavyweights such as Housing Development Finance Corporation (HDFC), Infosys, Kotak Mahindra Bank, Titan Company, Bajaj Finserv, among others contributed the most to the indices gain. In the broader market, BSE Midcap index soared 1.20 per cent or 312 points to end at 26,304, and BSE SmallCap index gained 0.78 per cent or 226 points to shut shop at 29,127. India VIX, the volatility index, gained 3.76 per cent to settle at 16.34 levels. Technical analysts say that 18100 would be the next intraday breakout level for the day traders and above the same the uptrend momentum will continue up to 18150-18200.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
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Both the key benchmark indices closed above the psychological mark after a strong rally on Wall Street last Friday boosted sentiment back home. The recent volatile trend continued but the Nifty closing above 18000 mark is broadly positive for the market. On intraday charts, the index has formed a promising higher bottom formation and also formed long leg Hammer candlestick formation. However, the key concern is that the Nifty is still trading below 20 day SMA or below 18100. We are of the view that 18100 would be the next intraday breakout level for the day traders and above the same the uptrend momentum will continue up to 18150-18200. On the flip side, a strong support is seen near 17900, and if it slips below the same the uptrend would be vulnerable.
Ajit Mishra, VP – Research, Religare Broking
Markets started the week with modest gains amid volatility and settled around the day’s high as well. After the initial uptick, the benchmark slipped sharply lower however gradual recovery in select index majors changed the mood as the day progressed. A mixed trend was witnessed on the sectoral front however noticeable traction on the broader front kept the participants busy till the end. Finally, the Nifty index settled around 18,083; up by 0.9%.
The recent buoyancy in the global markets has relieved the participants amid mixed domestic cues however it’s too early to call it a trend reversal. As the festive season is behind us, focus will shift back to earnings announcements. Besides, domestic macro data outcome (IIP & CPI) and global cues will be closely tracked. Nifty should make a decisive move above 18,100 to resume the trend else consolidation/profit taking would resume. Meanwhile, we recommend continuing with a stock-specific trading approach and focusing on the themes/sectors which are seeing noticeable buying interest.
Palak Kothari, Research Associate, Choice Broking
On the technical front, the index has formed a hammer candlestick pattern on the daily time frame indicating a further uptrend. The stochastic indicator is witnessed with a positive crossover suggesting a northward journey. The index has also settled above the 21-days Moving Average, which further adds bullish momentum to the counter. At present, the index has a support at 17750 and resistance at 18200 levels.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The markets rose to post its tepid opening and we have managed to close above the 17950-18000 level, which is a positive sign. This needs to be maintained for a couple of sessions and that would then open the doors for the index to scale higher towards 18400-18500. Since good support lies around the 17550-17600 level, dips can be utilized to accumulate long positions.