Banking and financials led the Indian markets higher on Monday as both benchmark indices – Sensex and Nifty closed positive for fifth straight session. The former rose 936 points to 56,486 and the latter 241 points to 16,871, while Nifty Bank gained 766 points to 35,312 and Midcap 57 points to 28,268. 

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As many as 37 stocks advanced and 13 declined on Nifty50, in which Infosys, HDFC Bank, SBI and ICICI Bank and Axis Bank are top gainers, while IOC, ONGC, HUL, Tata Motors and HDFC Life are the top losers during the market close on Monday. 

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Metal shares slip as commodity prices are flat, Hind Copper, NALCO down 3% each and Sugar Stocks continue the gaining momentum, Balrampur Chini up over 2 per cent. The market breadth slightly in favour of declines, advance-decline ratio at 1:1. 

Chemical stocks moved higher as China locks down one of major producing cities. While Jubilant Food slumped over 12 per cent on CEO Pratik Pota’s resignation, stock at a 15-month low. Similarly, AU Small Fin Bank amongst top midcap losers with a fall of over 6 per cent today. 

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

Expert: Santosh Meena, Head of Research, Swastika Investmart Ltd. 

The Nifty manages to close above its 20-DMA after 02nd February. The rally can be attributed to some positive news flows on the Russia-Ukraine issue, cool off in crude oil prices, the expectation of only a 25 basis points rate hike by the US Fed, lack of selling by FIIs, and buying by DIIs.  

Technically, Nifty manages to close above the important resistance zone of 16750-16800 where 200-DMA of 16975 is an immediate and critical hurdle; a short-covering rally towards 17300 level likely. 20-DMA of 16740 will act as immediate support, followed by 16500-16400 on the downside. 

Expert: Palak Kothari Research Associate Choice Broking 

Technically, Index has formed a bullish candle on the daily chart as well as given closing above 21 -DMA which suggest strength in the counter. Furthermore, the Index has given a breakout of the falling trendline which points out northward direction in the counter.  

Moreover, the index has given closing above 21 & 50 HMA which adds strength to the price. At present, the index has support at 16500 levels while resistance comes at 17000 levels, crossing same can show 17200-17300 levels. Bank nifty has support at 34600 and resistance at 35800 levels. 

Vinod Nair, Head of Research at Geojit Financial Services. 

The market is gaining traction as strategy is shifting from tactical sell to tactical buy. Investments are chipping in as commodities prices are reverting. FIIs selling and crude prices are subsiding, which is expected to continue based on diplomatic developments and provide an edge to the Indian market.  

Globally, investors are bracing for rate hikes as expected. Domestic WPI has spiked up however market is ignoring as future prices can get gloomy" 

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

Nifty index moved in a unilateral direction throughout the day. It formed a Bullish candle on daily scale and has been making higher lows from the last four sessions. It must hold above 16750 zones, for an up move towards 17000-17200 zones and support exists at 16666-16500 zones.  

Expert: Sandeep Jain TradeSwift – Director 

Investors should keep adding quality fundamental stocks in a staggered manner and must avoid from any knee-jerk movement as the uncertainty in the market persists. The volatility in the market is still high amid India VIX being above 20, hence traders should work cautiously.