Bulls help Sensex, Nifty complete his late recovery in the green; Can the pullback rally expand further?

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Larger markets closed with gains, with the exception of small cap indices. (Photo: REUTERS)

The bulls regained control on Dalal Street at the last hour of trading on Tuesday, helping Sensex and Nifty bounce back from the lows. The S&P BSE Sensex jumped 514 points or 0.88% to close at 59,005 while the NSE Nifty 50 index jumped 165 points or 0.95% to close at 17,562. Bajaj Finance was the first winner Sensex at close, up 5%, followed by IndusInd Bank, Tata Steel and ITC. Maruti Suzuki India was the worst performing Sensex component, down 2.5%, followed by Bajaj Auto, Nestlé India and Power Grid Corporation. Bank Nifty staged a rally to finish at 37,235. Larger markets closed with gains except for small cap indices. India VIX was down with losses.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities –

“After two days of strong correction, benchmarks rallied sharply as Nifty found support at 17326 to reverse the bearish trend. Technically, the texture of the sharp reversal formation near the 10-day SMA suggests a further uptrend from current level.We believe that while the short term trend is still upward, uncertain global market conditions could see the Nifty move into a range of 17650- levels. 17450. For day traders, as long as the index is trading above 17450, a downward rally should continue to the levels of 17600-17650 -17680. On the other hand, below 17430, the uptrend would be vulnerable. ”

Vinod Nair, Research Manager at Geojit Financial Services –

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“National indices faltered at the start of the trading session, but positive trends in global markets supported Indian stocks to rebound in the second half of the year. Global equities have recovered from fears over problems in the Chinese economy, ahead of the FOMC meeting which will start later today. All major sectors have traded in the green zone while the automotive sector has remained under pressure due to rising input costs and the semiconductor shortage facing the global auto industry.

Rohit Sigre, Senior Technical Analyst at LKP Securities –

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“A strong rally was seen from a good support zone as mentioned and closed one day at 17562 with gains of 1% and formed a bullish candle on the daily chart after two bearish candles. Now 17600-17660 will act as Resistance zone One can also lock their long gains around said levels and supports are placed in the 17500-17430 zone, the overall range is between the 17300-17800 zone.

Gaurav Udani, CEO and Founder, ThincRedBlu Securities –

“Nifty recovered well after hitting a low of 17326, however, volumes were below average. It closed at 17,570, up 170 points. It is important for Nifty to stay above 17250, otherwise we might see a correction to 16800 levels. Traders should be careful, Nifty can cause sharp moves in either direction, triggering a stop loss on both long and short positions. Overall, Nifty’s trend will remain bullish as long as it is trading above 17250. “

Sachin Gupta, Assistant Vice-President, Research, Choice Brokerage –

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“Technically the nifty50 recovered from the immediate support around 17270 levels and held above 9 days of SMA and average Bollinger Band formation, indicating new strength for the next session of scholarship. On an hourly chart, the shrewd index broke the formation of the falling channel and showed a positive cross in the Stochastic and RSI, supporting the uptrend. Right now, Nifty has its crucial support at 17250 levels while resistance is at 17650 levels. “

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