Markets Ahead- Nifty, Sensex rebound from 3-day losing streak; traders expect less hawkish-Fed, eye Q3 earnings

Markets Ahead: Nifty, Sensex rebound from 3-day losing streak; traders expect less hawkish-Fed, eye Q3 earnings

Benchmark Indian equity indices closed Monday’s session higher, snapping a three-day losing streak, jumping around 1.4%. The BSE Sensex rose about 850 points, to end at 60,747, while NSE Nifty 50 advanced 240 points to close above 18,100. Bank Nifty rose 0.93% to close above the 42,500 level while Nifty IT rose 2.83% and Nifty Consumer Durables fell 0.46%. Mahindra & Mahindra, HCL Tech and TCS were the top gainers on the Nifty 50 index while Titan, Bajaj Finserv and Bajaj Auto were the top laggards.Markets Decoded: Indian markets followed Wall Street’s cues

“Wall Street climbed in anticipation of a less aggressive US Fed as wage growth slowed and service activity contracted, fuelling bets that inflation is moderating. Furthermore, the December payrolls rising higher than anticipated increased the possibility of a softer landing for the US economy. These gains were also absorbed by the domestic market, with IT being the biggest gainer ahead of the release of sector earnings, as the favorable US economy boosted sector optimism.” – Vinod Nair, Head of Research at Geojit Financial Services

“Volumes on the NSE continued to be on the lower side. Broad market indices ended in the positive outperforming the Nifty and the advance decline ratio was up at 1.52:1. IT stocks did well following overnight gains on the Nasdaq and ahead of TCS quarterly numbers in the evening. Asia’s benchmark stock index was on track to enter a bull market compared to Oct 24 low, as China’s reopening and a weakening dollar lure investors back to the region. European stocks rose on Monday, as investors bet that cooling inflation on either side of the Atlantic will allow central banks to slow the pace at which they raise interest rates early this year.” – Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty Technical View: 18,000 sacrosanct support level

“Technically, a strong bullish candle on daily charts and promising reversal formation is indicating further uptrend from the current levels. For bulls, 18,000 would be the sacrosanct support zone, and above the same, the pullback formation will continue till 18,200-18,270. On the flip side, below 18,000, the uptrend would be vulnerable and the index could retest the level of 17,950-17,900.” – Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities