Sensex surges for seventh day straight; Nifty trend bullish, resistance placed at 18600-18650

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October 18, 2021 4:14 PM

Bulls continued to control Dalal Street for the seventh-day straight trading session, taking the benchmark indices to fresh all-time highs.

Stock marketBulls are expected to continue dominating market movement. (Image: REUTERS)

Bulls continued to control Dalal Street for the seventh-day straight trading session, taking the benchmark indices to fresh all-time highs. At the end of the day’s trade, S&P BSE Sensex settled 459 points or 0.75% higher at 61,765, while NSE Nifty 50 added 138 points or 0.76% to close at 18,477. Bank Nifty zoomed 0.87% and closed at 39,684. Broader markets mirrored the up-move and India VIX jumped 9% to end at 17.19 levels. Trading on Monday was impaired for some investors owing to technical glitches on CDSL. Looking ahead, analysts believe earnings will keep the stock market in a jolly mood. Bulls are expected to continue dominating market movement.

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

“Investors seem to be cheering the strong earnings numbers from technology giants as absence of any negative news has been markets to new highs. After a strong rally on daily charts last week, the index has formed a Doji Star kind of formation which suggests a temporary overbought situation. However, the short-term trend is still positive. We are of the view that due to overbought formation the bulls may take a caution stance near the 18600-18650 resistance level. For day traders, 18400 could be the trend decider level. Above the same, the uptrend formation will continue up to 18600-18650 levels. On the flip side, below 18400, a technical sell off up to 18350-18275 is not ruled out. The intraday texture shows markets in an overbought zone, hence level based trading would be the ideal strategy for day traders.”

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

“The Index went very close to its third pit stop of 18600 but retraced from there during the closing session. Traders should not jump into picking up long positions. A buy on dips approach would be most appropriate as the markets are outstretched. While the trend remains bullish, accumulation of the index is appropriate on corrections as that is when the risk-reward becomes favorable.”

Vinod Nair, Head of Research at Geojit Financial Services

“The domestic market traded at record highs withstanding the weak trends in the global market due to disappointing Chinese GDP numbers and global inflationary pressure as a result of energy shortage. Chinese GDP grew by just 4.9% during the July-September quarter owing to lower than expected growth in industrial activity.  However, the trend in the Indian market was bullish as PSU Banks, Metals, IT and Energy stocks took charge of the rally.”

Palak Kothari, Research Associate, Choice Broking –

“On the technical front, the Index has been trading with higher high & higher bottom formation which suggest strength for the upside. A daily momentum indicator RSI and MACD both have shown positive crossover on the daily chart which adds more bullishness to the price. Furthermore, the price has also moved above the upper “Bollinger Band” formation, which suggests the bullish movement will continue further in the near term. On an hourly chart, the Index has been trading above 21&50 HMA, which adds bullish momentum to the index. At present, the Index has been trading at uncharted territory with immediate support at 18250 level while sustained above 18400 levels can show 18600-18700 levels in near term.”

Mohit Nigam, Head – PMS, Hem Securities –

“On the technical front, benchmark indices witnessed continuous positive trend after sustaining well above 18,400 levels. According to our technical analysis this positive momentum might continue till 18,500 levels in coming sessions. Immediate support for Nifty 50 is 18,300.”

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