Domestic stock markets returned to positive territory on Tuesday, ending the five-day losing streak. S&P BSE Sensex gained slightly to end at 49,751 while Nifty 50 gained 14,700. Larger markets outperformed benchmarks. The BSE Smallcap index rose 0.74%, the BSE Midcap index gained almost 1%. ONGC was the top winner, zooming in at 5.55% at the end of the day’s trade. The Kotak Mahindra bank was the most lagging behind, with a drop of 3.87%. The volatility index fell 0.95% after zooming more than 15% yesterday. Among sector indices, Bank Nifty, Nifty PSU Bank, NIFTY Private Bank and Nifty Pharma closed with losses.
Shrikant Chouhan, Executive Vice President, Technical Equity Research at Kotak Securities-
“Markets registered small gains after falling sharply over the past five sessions. Most of the time this type of formation works as a continuation and on Wednesday if the market breaks the 14630/49600 level the Nifty / Sensex may fall further to the 14530/49300 level support. However, a 50% retracement shown by the Nifty / Sensex after the Union budget was announced could be a turnaround for the market. In short, there should be a buy strategy if the Nifty / Sensex drops to the 14530/14500 levels, however, if the Nifty closes below the 14500 level, it would indicate further weakness. On the upside, the 14850/50350 and 14950/50750 levels would be the main obstacles. “
Deepak Jasani, Head of Retail Research, HDFC Securities –
“The benchmark Indian stock indexes closed the high point of the day on February 23, but managed to break a five-day losing streak. Asian markets mostly rose on Tuesday, fueled by growing hopes that the vaccine rollout will get the global economy back on track, but optimism has been tempered by lingering concerns that the recovery will fuel inflation and interest rate hikes. Emerging market bond funds faced outflows for the first time in 21 weeks in the week ended February 17, with outflows of $ 689 million. “
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments –
“The Nifty gave up most of their winnings throughout the day. The weakness continues to persist in the near term and we can expect the index to slide further to levels closer to 14500. Any rally can be used to sell this market for lower targets. The upside is capped at 15,000 -15,100 and until we get past that comfortably the markets will remain bearish. “
Vinod Nair, Research Manager at Geojit Financial Services –
“The domestic market recovered during the morning, supported by a strong Asian market, as negative waves from European peers outpaced gains at the end of the day. Anticipation of a strong global recovery, driven by rising international commodity prices, helped the market, but was tempered due to high bond yield and cases of the virus. As a result, volatility has increased on the domestic front, but large markets continue to be drawn to themes such as mid and small caps, cyclicals, energy, PSUs, metals and industrials. “
Rohit Singre, Senior Technical Analyst at LKP Securities –
“The index managed to hold above the 14700 area and ended a day with small gains forming a Doji candle pattern on the daily chart after five consecutive bearish candles. The index has good support near the 14630 area and the immediate resistance is approaching the 14800 area so the index may show some kind of consolidation in the same range and the final direction will be clear once we see a breakout on either side of the mentioned range.