The Indian markets on Tuesday snapped three-day weakness to end on a higher note amid massive volatility. Sensex closed 187 points higher at 57,809 after a 900-point trading range, while Nifty50 settled above 17250-mark. Midcap index closed 1 per cent lower, market breadth favours declines. 

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Almost all sectoral indices closed in the green except for IT, media and realty. Metal and pharma stocks contributed most the markets rally on Tuesday. At least 28 stocks closed in the green, 22 in the red. Tata Steel, Cipla, Reliance were the top gainers and ONGC and Power Grid top losers. 

See Zee Business Live TV Streaming Below:

Small-cap fertilizer and chemical company GNFC continued the gaining momentum, as stock up 18 per cent in 2 sessions. Tata Power is top midcap loser, slipped 7 per cent ahead of its Q3 earnings. 

We have collated views from different experts as to what investors should do when trading resumes: 

Expert: Vinod Nair, Head of Research at Geojit Financial Services

Indian equities were highly volatile today, swaying between gains and losses while managing to close on a positive note. Selling pressure from FIIs countered by bargain hunting by domestic investors.  

European shares advanced over ECB President’s comments stating that there are lower chances of a measurable tightening of monetary policy, which helped in comforting global investors. 

Expert: S Ranganathan, Head of Research at LKP securities

"As policy makers face one of the fastest pace of price increases in the developed markets, global stock markets are facing a challenge in pricing the likely actions by central bankers. Back home, the Nifty opened extremely weak and drifted closer to 17K levels on geo-political worries and soaring oil prices with passive emerging market funds booking profits.  

As bond yields price in ahead of the RBI policy, supply of paper ahead of a mega primary market offering kept investors circumspect though indices managed to recover substantial lost ground to end in the Green in afternoon trade. 

Expert: Rupak De, Senior Technical Analyst at LKP Securities

Bulls managed to hold the psychological 17000 level after a fight with the bears. On the daily chart, Nifty has formed a dragonfly Doji pattern suggesting buying at the lower levels.  

The recovery in the market may continue as long as the index holds above 17000. On the higher end, immediate resistance is visible at 17330. Sustained trades above 17330 may induce further rally in the market" 

Expert: Chandan Taparia Vice President | Analyst-Derivatives Motilal Oswal Financial Services  

Nifty index opened positive but failed to hold above 17300 zones and witnessed sharp decline in the initial half of the day. After drifting down and taking support at 17050 zones, it recovered well in the next half of the session and closed with gains of around 50 points.  

It formed a small bodied Bearish but a Hammer Sort of candle on daily scale with long lower shadow indicating buying interest is seen on declines. It has been forming lower highs - lower lows from the last four sessions.  

Now if it holds above 17300 zones by negating lower highs, then the recent correction may over and a bounce could be seen towards 17500 then 17777 zones where on the downside support exists at 17050 and 17000 zones.