The bulls made a comeback on Dalal Street today, helping national benchmarks soar amid positive global indices. S&P BSE Sensex finished 638 points or 1.22% higher at 52,837 while the 50-stock NSE Nifty finished 192 points or 1.23% higher at 15,824. Small cap indices outperforming benchmarks. Bank Nifty closed 0.76% higher at 34,677, while India VIX lost 10%. Financials and IT stocks were among the top gainers at Sensex, with Tech Mahindra rising 5.4% to lead the index, followed by Bajaj Finance, Bharti Airtel and Bajaj Finserv. Only HUL, Bajaj Auto, Asian Paints and Mahindra & Mahindra closed with losses.
Deepak Jasani, Head of Retail Research, HDFC Securities –
“Indian stock markets rebounded sharply after falling for three days following a rebound in global markets and a return of risk appetite. The Nifty recorded the biggest one-day gain in 2 months. While volumes were in line with recent averages, the lead-to-decline ratio increased sharply in the positive. The midcap and smallcap indices rose a little more than the Nifty. Nifty is on the cusp of the downgap zone formed on July 19. If this downgap is bridged and we move above 15883, then the path to continue climbing opens to band 15915-15962.
Shrikant Chouhan, Executive Vice President, Technical Equity Research, Kotak Securities –
“The market saw a strong rally on the weekly expiration day after witnessing a strong correction over the past three sessions. Technically, the short term texture of the market is still bearish. However, the strong Today’s rebound indicates that the recovery is likely to continue if the key indices are successful in trading above the 20 day SMA or the 15750/52600 level. We believe the 15750/52600 and 15700/52400 levels would act as crucial support levels for Nifty / Sensex. Above the same level the pullback rally is expected to continue to the 15880-15920 / 53200-53400 levels. On the other hand, below 15700/52400 , the uptrend texture would be vulnerable. ”
Vinod Nair, Research Manager at Geojit Financial Services –
“Drawing inspiration from firm global markets, the domestic market has seen strong momentum, ignoring concerns about the spread of the sale of Covid-19 and FII. Global markets continued to hold onto gains on strong earnings reports and focused on the European Central Bank’s ongoing policy announcement. Confirmation by the Fed to continue its policy of support at the next meeting despite mounting inflationary pressures will be a key factor in maintaining the direction of the rally. “
Sumeet Bagadia, Executive Director, Choice Brokerage –
“Technically, the index formed an Open Bullish Marabozu candle, which suggests strength for the coming session. Additionally, the index closed above 21DMA and 50 DMA, which adds further strength on the meter. MACD Hourly Momentum Indicator also shows a positive cross which suggests strength for the next day. At present, the owl has support at the 15600 level while resistance is at 15950 levels. “
Jay Thakkar VP and Head of Equity Research at Marwadi Shares and Finance –
“The Nifty appears to have formed a short term low at 15,500 levels and now until those levels are not broken the overall bias remains positive. Markets have rebounded from fairly oversold territory so there has been a Strong rebound, but there is resistance at 15,900 levels in the short term, so until these levels are not removed, the Nifty can trade in a range of 15900-15700 levels. The index may record profit , this is why we recommend buying on lows near the 15700-15650 levels on Nifty.However, Bank Nifty only experienced a three-wave bullish pattern and reversed from 35 000 levels which acts as obvious resistance in the short term. The Banknifty has traded quite weakly and in the short term it should test the levels of 34,000. “