Sensex snaps 3-day losing streak; Nifty’s strong support lies in 17850-17800 range

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Updated: November 01, 2021 4:24 PM

BSE Sensex and Nifty 50 snapped the 3-day losing streak and jumped near 1.5 per cent on Monday, led by buying in IT and select banking stocks.

Sensex, Nifty, stock marketMonday's sharp upside bounce could be an indication of strong comeback of bulls from the lows. Image: Pixabay

BSE Sensex and Nifty 50 snapped the 3-day losing streak and jumped near 1.5 per cent on Monday, led by buying in IT and select banking stocks. BSE Sensex rallied 831 points or 1.40 per cent to 60,138.46, while NSE’s Nifty 50 index surged 258 points or 1.46 per cent to 17,930. Index heavyweights such as Infosys, HDFC Bank, Housing Development Finance Corporation (HDFC), Tata Consultancy Services (TCS), Kotak Mahindra Bank contributed the most to indices gain. BSE MidCap index outperformed the equity benchmark and surged nearly 2 per cent or 453 points. BSE Smallcap index also jumped 1.13 per cent or 316 points and settled at 28,299. India VIX, the volatility index fell 1.09 per cent to finish at 17.24 levels. Analysts say that if Nifty sustains above 17900, then the uptrend may take the index higher.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

Today’s rally came as a major relief as bears had been gaining strength over the past few sessions. The recovery was also aided by favourable global market sentiment, which triggered frenzied buying here. Benchmark Nifty opened with a gap up and in the late afternoon cleared the intraday resistance of 17800. Technically, the index has completed one leg of a pullback rally and now 18000 and 18050 would act as a crucial resistance level. The index has formed a strong bullish candle but the key concern is it is still trading below 20 day SMA. We are of the view that the intraday texture of the market is bullish but traders may prefer to take caution stance between 17975-18020 levels. As long as the index is trading above the level of 17800, the uptrend texture is intact. For bulls, the 17850-17800 level could be the strong support zone and below the same the uptrend would be vulnerable.

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

The Nifty has risen smartly to get past the 17900 level. If we can keep above this level for a couple of trading sessions, the uptrend should resume and take the index higher. On the downside, 17550-17600 has become a good support for the markets and until that does not break on a closing basis, it is safe to assume that the trend continues to remain on the upside.

Palak Kothari, Research Associate, Choice Broking

On the technical front, the Index has taken support from the lower Bollinger band and bounced from there, which points out strength for the upside. On the four-hour chart, the Index has confirmed a Bullish Harami kind of candlestick pattern which suggests bulls are active again. Furthermore, the index has given closing above 21&9 HMA, which suggests northward direction in the counter. Hourly Momentum indicator MACD & Stochastic is trading with a positive crossover which suggests upside momentum in the upcoming session. At present, the Nifty has immediate support at 17580 while resistance comes at 18100 levels.

S Ranganathan, Head of Research, LKP Securities

The month began on a volatile note till the bulls wrested the initiative on the back of buoyant PMI data and GST collections for last month. Despite the trends in e-way bills pointing towards higher GST collections in October ahead of festive demand, supply constraints in the automotive sector kept the street cautious. The GST numbers therefore ignited the bulls and barring the Oil & Gas index, most of the sectoral indices registered handsome gains.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities

Monday’s sharp upside bounce could be an indication of strong comeback of bulls from the lows. But, having formed a negative chart pattern recently, we expect this pull back to halt around 18100-18200 levels before showing another round of weakness from the highs. If the hurdle of 18200 gets broken decisively on the upside, then the present negative chart pattern could be nullified and the market could continue with further upside.

Mohit Nigam, Head – PMS, Hem Securities

Markets witnessed swift recovery from the support zone of 17600 levels and once it closes above the immediate resistance of 18000, we may witness 18400-18500 levels in the near term once again. Overall, we are positive on Indian markets and believe that investors should start fresh buying in quality stocks once Nifty 50 sustains above 18,000 levels for 2-3 sessions.

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