BSE Sensex and Nifty 50 recovered practically all the losses created in previous two sessions on Tuesday as bulls took more than D-Street. BSE Sensex surged 834 points or 1.72 per cent, whilst the broader Nifty 50 index added 240 points or 1.68 per cent. During intraday offers, Sensex jumped 936 points to hit a day’s higher of 49,500 and Nifty 50 index touched a higher of 14,546. Index heavyweights such as Housing Development Finance Corporation, Reliance Industries Ltd, ICICI Bank, HDFC Bank and Bajaj Finance contributed the most to the indices’ get. In the broader market place, S&P BSE MidCap index outperformed the huge-caps, settling 2.3 per cent or 427 points greater at 18,953. While the S&P BSE SmallCap index, completed at 18,634.97, up 1.6 per cent or 305 points.
Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst, Gemstone Equity Research & Advisory Services
There is no single explanation that we can attribute to today’s rise. However, if we appear purely from a technical viewpoint, the NIFTY saw a technical pullback from close to its brief-term 20-DMA. From a technical viewpoint, this session has defined a consolidation variety for the nifty with 14650 as the upper restricted and 14200 as the decrease one particular. The 14200 level is the low point (14222) of yesterday’s trading session. Another explanation that we can attribute to this rally is sharp brief-covering from decrease levels. Yesterday had noticed some heavy brief addition to higher beta stocks that resulted into brief-covering today. Broadly speaking, 14650-14222 is the variety in which NIFTY is probably to keep more than the instant brief-term.
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
The market place has formed full reversal formation by closing above the highest of the preceding day, which was at 14459/49122. Today, all the sectors closed in positive territory. The market place breadth was particularly encouraging. The uncommon surge in the Hang Seng helped other Asian markets to trade greater. Along with Asian markets, today’s efficiency of US markets would choose the next course of action for our markets. The market place is heading for 14580/49600 levels, which is a vital hurdle point for the market place. On the decisive break of 14580/49600 levels, it would outcome in retesting of 14650/49800 levels, which is an all-time highest level. On the downside, 14450/49100 and 14350/48800 would be big supports. The concentrate must be on Commodities and Pharmaceutical stocks.
Vinod Nair, Head of Research at Geojit Financial Services
Bulls took handle right after two days of a huge selloff, tracking positive cues from Asian markets and in expectation of a larger US stimulus to retain the liquidity alive. Buying was noticed across sectors with realty and PSU Banks outshining. The present market place will get a additional increase by foreign inflow if further US stimulus kicks in. However, current volatility in the market place has enhanced due to issues more than higher valuations and bond yields, investors must be watchful.
Ajit Mishra, VP – Research, Religare Broking Ltd
The bulls had been back in action as the markets gained practically two per cent and settled about the day’s higher as nicely. After two days of slide, the benchmark opened greater, in response to an optimistic statement from US Secretary of Treasury, Janet Yellen, about a massive fiscal push in the US. The momentum additional gained strength as the session progressed, with healthier shopping for across sectors. The broader markets also posted decent gains in the variety of 1.6-2.3%. Going ahead, earnings and worldwide cues would stay on the participants’ radar. Besides, we’re also seeing noticeable buzz across the sectors in the run-up to Budget. We really feel it would be prudent for the markets to devote some time about the present levels. Meanwhile, there’ll be no shortage of trading and investment possibilities, thanks to prevailing earnings season and upcoming price range. Amid all, we recommend not to go overboard and stick to the top quality names and accumulate them on dips.