Dalal Street Corner: Markets end positive for 2nd day in row – What should investors do on Wednesday

Led by metal and auto stocks, the markets on Tuesday ended on a positive note for the second session in a row. Sensex gained almost 400 points, while Nifty50 was above 18250-level at the close today. Many analysts are of the view that the market would see further momentum from today’s session, going forward. 

In this regard, Vijay Dhanotiya, Lead Technical Research Analyst at CapitalVia Global Research said, “The Market witnessed some volatile movements and an attempt to hold above the Nifty50 Index level of 18200. Our research suggests that 18200 will be an important support level for the market.” 

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He added, “If the market is able to sustain the level of 18200, we can witness a positive momentum in the market which can lead to the higher levels near 18600. We have observed the momentum indicators like RSI and MACD indicating positive momentum in the market.” 

"Broad-based buying led by auto, realty, and metal stocks aided the bourses to bell the day in positive territory. However, continuous selling by the FIIs in the market fanned investor cautiousness. Upbeat quarterly earnings outweighing inflation worries boosted the morale of global markets" Vinod Nair, Head of Research at Geojit Financial Services said in a post-market note. 

"The Nifty index closed at 18268, up nearly 1 per cent and formed a bullish candle on the daily chart after 6 consecutive red candles”, Rohit Singre, Senior Technical Analyst at LKP Securities mentioned. 

He added, “The Index has shifted its base to 18200-18100, any dip around this will be again buying opportunity with a stop loss of 18100 and if prices sustain above-said levels then some extension may be seen in the current pullback towards immediate hurdle zone of 18350-18500 zone" 

Similarly, Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities Ltd said, “The index has formed a promising reversal formation near the 20-day SMA which is broadly positive. Besides, it has formed a higher bottom formation that also supports further uptrend on intraday charts.”