Dalal Street Corner: Market ends positive above key level; what investors should do on Tuesday

The Indian markets concluded on a positive note on Monday, as the Sensex gained around 500 points, while the Nifty50 ended above the 18050-level. The surge is mainly led by the metal, IT and auto stocks. The majority of the analysts expect with the Nifty closing above the 18000-mark, the market would see an upward move going ahead.

In this regard, Chandan Taparia Vice President - Analyst-Derivatives at Motilal Oswal Financial Services Limited, said, “The Nifty index opened positive above the 18000 levels and after a slight dip in the initial tick, it rebounded to 18087 levels.”

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“Buying was seen at declines which strengthened the index and it closed with gains of around 150 points. It formed a Bullish hammer sort of candle on a daily scale with long lower shadow. Now, it has to hold above the 18000 levels for an up move towards 18150-18350 zones and has major support at 17850-17777 levels on the downside”, Taparia added.

While Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers pointed out that during the afternoon session markets erased initial losses and traded in the green zone. 

Solanki said, “Traders took the support of the statement by industry chamber PHDCCI that India's economic recovery gained momentum in recent months on the back of rapid progress in vaccinations, festive season and consequent improvement in consumer and industry sentiments.”

 Vijay Dhanotiya, Lead of Technical Research at CapitalVia Global Research Limited, said that the market witnessed some swift recovery from the support levels and after the market was able to breach an important resistance level of 18000. 

The market suggests that sustaining above 18000 will be an important level for the market to stay positive in the short term, said Dhanotiya.

And, “If the market is able to sustain the level of 18000, it can witness a positive momentum in the market which can lead to the higher levels near 18250. The momentum indicators like RSI and MACD indicate positive momentum in the market, he added.