Dalal Street Corner: Markets end stronger after witnessing intraday fall; what should investors do on Wednesday
Sectorally, Nifty IT gained the most amongst indices, Tech Mahindra and TCS were top gainers. As many as 42 stocks advanced and 8 declined on the Nifty50.
Indian markets staged a smart comeback to end on a high after a muted opening and intraday correction. The recovery was led by financial and auto stocks. Frontline indices gained almost 2 per cent from day’s low to close near day’s high, as Sensex rose 697 points to 57,989 and Nifty50 up by 198 points to 17,316 levels.
Sectorally, Nifty IT gained the most amongst indices, Tech Mahindra and TCS were top gainers. As many as 42 stocks advanced and 8 declined on the Nifty50.
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Strong buying was witnessed in IT, Auto, Banking and Oil & Gas space while some selling pressure was seen in realty sector. Oil marketing companies surged on fuel price hike, Indian Oil Corporation and Bharat Petroleum Corporation Limited up 2-3 per cent each.
Globally, US 10-year yield have crossed 2.3 per cent and there are expectations that US Fed will raise rates by around 50 basis points in its May-June meeting.
While Sresta Natural Bioproducts Ltd, Maini Precision Products Ltd and Campus Activewear Ltd have received capital market Securities and Exchange Board of India (SEBI)’s approval to launch initial public offering.
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.
The domestic market started with a negative bias taking cues from rising crude prices and hawkish signals from Fed on aggressive policy tightening. However, the trend reversed as European markets opened on a positive note buoyed by hope that Ukraine may consider working towards a truce.
Expert: Sachin Gupta, AVP – Research, Choice Broking
Technically, the nifty index has formed a bullish candle after taking a support at 50% Retracement Levels and moved above 50 days Exponential Moving Averages that suggests a bullish strength for the coming day.
All-important key indicators like RSI, Stochastic & MACD witnessed positive crossover that supports the bullish bias. At present, the index has support at 17000 levels while resistance comes at 17470 levels. On the other hand, Bank nifty has support at 35700 levels while resistance at 37000 levels.
Expert: Mohit Nigam, Head - PMS, Hem Securities
Market was quite volatile today where some pressure was seen in the morning session trade but a positive sentiment was seen in the second half.
We believe inflation may be a concern for investors in the near term so investors should focus on quality stocks with strong growth visibility and where the rise of commodity prices have minimal impact on their business.
On the technical front, Immediate support and resistance in Nifty 50 are 17000 and 17500 respectively. Bank Nifty immediate support and resistance are 36800 and 37000 respectively.
Expert: Ajit Mishra, VP - Research, Religare Broking Ltd
Markets posted strong gains and settled around the day’s high amid mixed cues. Initially, the bias was slightly on the negative side in continuation to Monday’s fall, however a strong surge in the select index majors from IT, energy, and bank space completely changed the tone in the latter half.
We reiterate our positive yet cautious view on markets amid global uncertainty. A decisive break above 17,350 in Nifty would pave for a further surge towards 17,500-17,700 levels. And, we feel the banking pack holds the key from hereon. Participants should align their positions accordingly.
Expert: Sandeep Jain, TradeSwift – Director
Overturn of market from negative to positive was a surprise, as FIIs (Foreign Institutional Investors) have regained buying sentiment, the domestic investors are in profit booking mode. Those investors who have entered market at lower level, should book some profit as market has recovered briefly.
Nifty index closing above 17300 level is a good sign, we see a resistance at 17500 and support between 16800-1700 levels at downside. Investors are also suggested to keep doing staggered buying as the index is still over 1000 points down from its all-time high.
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