Dalal Street moved larger on the weekly expiry session. S&P BSE Sensex jumped 272 points and closed at 48,949 when the Nifty 50 index gained 106 points to breach 14,700. Bajaj Auto and HDFC have been the best gainers on Sensex, each surging more than 2% every single. On the other hand, Power Grid, ONGC, and Asian Paints have been the best laggards. India VIX traded in the unfavorable for most of the day but closed with marginal gains. Among sectoral indices, only Nifty Pharma, Nifty PSU Bank, and Nifty Private Bank indices closed in the red.
Deepak Jasani, Head of Retail Research, HDFC Securities
“Indian benchmark equity indices rose for the second straight day following healthy global cues. The Nifty opened higher and kept making higher tops higher bottoms through the day. Asian shares rose on Thursday and commodity prices held near multi-year highs as investors switched to cyclicals amid expectations of a strong economic recovery. Nifty moved above the high of May 04, thus signalling that the May 03 bottom of 14416 is a short term bottom. The next resistance for the Nifty is at 14846 while the support is at 14601. FPI selling seemed to be subdued today, while local traders continued to ramp up prices of select small and midcap stocks.”
Vinod Nair, Head of Research at Geojit Financial Services –
“Amidst rising covid cases, hopes of recovery through vaccine drives and a positive global market is aiding the domestic market to ride a positive wave. Biden’s decision to waive intellectual property rights on vaccines pumped in global optimism. Metal stocks continued to outshine other sectors as it kick-started its earning season on a better-than-expected note. Auto and IT were the other sectoral leaders while mid and small-cap stocks mirrored the trend.”
Rohit Singre, Senior Technical Analyst at LKP Securities –
“One more positive session with index given close at 14733 with gains of nearly one per cent and formed a bullish candle for the second consecutive day. Now index again reaching to its strong hurdle zone of 14800-14900 zone fresh breakouts will be only if nifty sustain above 15k mark because we have witnessed profit booking from said levels in recent past, good support is formed at 14670-14600 zone managing above said level immediate structure positive.”
Manish Shah, Founder, Niftytriggers –
Nifty closed the day larger and the pattern in play in the last 3 days is a 3 inside-out pattern. This is a bullish pattern that has worked effectively in the last 3 months and normally, Nifty sees a comply with-up rally at least for a couple of days. If Nifty trades and holds above 14750 count on a rally to about 15050-15000 in the next couple of days. Support is at 14650-14630. A break beneath this could imply a drop to 14500. Nifty is displaying a tendency to bounce off the lows. Any drop at 14500 would imply a purchasing chance.
Jay Thakkar – VP and Head of Equity Research at Marwadi Shares and Finance –
“Nifty closed well above 14700 levels which is quite positive in the short term. There is a minor hurdle at 14750 levels above which it can zoom till 14725/14850 levels. On the lower side, the immediate support is pegged at 14650 levels and below that 14600 levels. Nifty Metal continues to shine whereas there was a good short covering seen in Nifty Auto and Nifty IT. Going forward in the short term Nifty Pharma, Metals, Auto and BFSI are likely to push Nifty up.”