Sensex extends rally to third day straight, Nifty resistance at 17442-17640, may set fresh highs soon

Sensex extends rally to third day straight, Nifty resistance at 17442-17640, may set fresh highs soon

Bulls dominated Dalal Street once again as benchmark indices closed with gains on Friday. Sensex skyrocketed 712 points or 1.25% to settle at 57,570 while the NSE Nifty 50 ended at 17,158, jumping 1.35%. Headline indices have soared higher for three consecutive days now. Tata Steel was the top Sensex gainer, soaring 7.4%, followed by Sun Pharma and HDFC. Dr Reddy’s dropped 3.9% to end as the worst performing Sensex stock, accompanied by Kotak Mahindra Bank, State Bank of India, and Axis Bank. India VIX closed with losses, giving up 17 levels while Bank Nifty was up 0.30%. 

Deepak Jasani, Head of Retail Research, HDFC Securities –

Rupak De, Senior Technical Analyst at LKP Securities-

“Nifty remains strong as the index gained for the third consecutive day. Besides, the index has sustained above the major short-term moving indicating a positive trend. The daily RSI is in bullish crossover and rising. The trend is likely to remain positive over the short term. On the lower end support is pegged at 16800-16775. Resistance on the higher end can be seen around 17400.”

Palak Kothari, Senior Technical Analyst, Choice Broking –

“On the technical front, Nifty has formed a Bullish candle on a weekly chart which suggests an upside rally for an upcoming session. Nifty has finally given a closing above 200-DMA i.e 17025 levels which suggests a northward journey in the counter. On the OI Data, On the call side the highest witnessed at 17500 level while on the put side was at 16900 level & followed by 16800. The support for nifty has shifted around 17000 levels while on the upside 17320 may act as an immediate hurdle. On the other hand, Bank nifty has support at 36800 levels while resistance at 37800 levels. Overall, the Index has inched up by almost 2.5% this week if nifty managed to hold 17000 level then it can show more upside rally till 17320,17500.”

Vinod Nair, Head of Research at Geojit Financial Services –

“Wall Street staged a robust recovery after a shaky opening due to a contraction in the US economy, as the market perceived that aggressive monetary policy will soon come to an end. This added optimism in the domestic market, and the rupee strengthened against the dollar increasing appetite for FIIs.”

Ajit Mishra, VP – Research, Religare Broking

“Markets traded robust for yet another session and gained over a per cent. With major events behind us, the focus would be on earnings and upcoming high-frequency data like auto sales, PMI numbers and GST collection figures for cues. We reiterate our positive view and suggest continuing with the “buy on dips” approach.”