Indian equity markets ended higher on first day of the new financial year with BSE Sensex ending 708.18 points or 1.21% higher at 59,276.69, and NSE Nifty Nifty 50 settling 205.70 points or 1.18% up at 17,670.50. Indices climbed higher as investors cheered the strong GST numbers for March, correction in crude prices. Reports about Russia started pulling out some troops from the Ukraine capital also aided the sentiment. The euphoria continued as FII’s did a major net buying of Rs 3,088 crrore yesterday after a considerable period of time. According to analysts, Indian equity markets may continue to outperform where movements of global markets, crude oil prices, FIIs’ behavior, and news flows related to the Russia-Ukraine issue will remain key factors.
Sachin Gupta, AVP, Research, Choice Broking
“Technically, the nifty index has formed a Bullish Engulfing Candlestick pattern on the daily chart and also settled above 21-Days Exponential Moving Averages. On a weekly chart, the nifty index has moved above Middle Bollinger Band formation, which suggests bullish strength for the near term. A momentum indicator RSI (14) and MACD indicated positive bias. At present, the index has support at 17470 levels while resistance comes at 17800 levels. On the other hand, Bank nifty has support at 36600 levels while resistance at 37800 levels.”
Mohit Nigam, Head – PMS, Hem Securities
“Benchmark indices ended the week on a strong note with Nifty 50 closing at 17670 and Sensex closing at 59279. Indices opened the day on a negative note but showed directional bias in the afternoon session. Investor sentiments got a boost on the back of record GST collections in the month of March. Correction in crude oil prices was witnessed as US is opening its energy reserves and has directed private oil exploration companies to increase oil drilling. The euphoria continued as FII’s did a major net buying of Rs 3088cr on March 31 after a considerable period of time. On the technical front, the key resistance levels for Nifty50 are 18100 and on the downside 17400 can act as strong support. Key resistance and support levels for Bank Nifty are 37600 and 36600 respectively.”
Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities
“Technically, after a 17450 breakout the Nifty has maintained breakout continuation formation which is broadly positive. In addition, strong bullish candle on weekly charts along with higher bottom formation also support further uptrend from the current levels. However, traders may prefer to take cautious stance near the 17800 resistance level due to the market being in an overbought situation. The current texture is likely to continue unless the index slips below 17450 or 10 day SMA. Above the same, we could see Nifty touching the level of 17800 and further upside could lift the index up to 17935. On the flip side, 10 day SMA or 17450/58400 would be the sacrosanct level for the positional traders and below the same, the index could slip to 17350-17200 levels.”
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
“A long bull candle was formed on the daily chart, which indicate an upside breakout of the range movement and also immediate resistance of 17500 levels. This is positive indication and one may expect further upside in the short term. The market is now surpassing the hurdles one after another. There is consolidation/minor weakness at the resistance before showing sharp upside breakouts.”
“The next overhead resistance of previous swing high is placed at 17795 and that is going to be tested soon. The sharp upside movement continued in Nifty as per weekly chart (formation of long bull candle), after a pause of last week. The upside momentum seems to have picked up in the market after a small consolidation movement. The Nifty is expected to move towards 17800-18000 levels by next week, before showing another round of minor downward correction from the highs. Immediate support is placed at 17550.”