Nifty, Sensex surge 2% on strong global cues as bulls return to D-St; ‘market trend bullish, buy on dips’

Nifty, Sensex surge 2% on strong global cues as bulls return to D-St; ‘market trend bullish, buy on dips’

Bulls fuelled pullback rally on Tuesday as Indian equity markets reversed the previous session’s losses to gain over 2 per cent on the back of positive global cues. Frontline indices witnessed a massive buying interest today as Sensex zoomed nearly 1300 points and Nifty 50 settled above 17250. The BSE Sensex closed 2.25 per cent higher at 58,065, while Nifty50 ended 2.29 per cent up at 17,274. “Nifty smartly broke out upwards after sideways consolidation. It will now face resistance in the 17291-17401 band while 17176-17196 band will offer support in the near term,” said Deepak Jasani, Head of Retail Research, HDFC Securities.

S Ranganathan, Head of Research at LKP securities

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

“On the backdrop of strong global cues, the benchmark indices bounce back sharply. Technically, after a sharp intraday correction, the index bounce back sharply. Post gap up opening, indices held the level of 17100/57500 and managed to close above the same. They also formed higher bottom formation on intraday charts which indicates continuation of uptrend in the near future. The short-term market structure is positive but due to temporary overbought condition, we could see range-bound activity in the near future. For the traders now, 17200-17150/57800-57600 would be the key support zone whereas 17400-17425/58300-58400 would act as an important resistance zone for the index.”

Palak Kothari, Senior Technical Analyst, Choice Broking

“On the technical front, the Nifty has been trading with the support of above 89-DMA as well as given closing above 200 DMA which points out bullish momentum in the counter. Furthermore, the Nifty has given a breakout of rectangle pattern on an hourly chart which suggests strength for the upside. The support for nifty has shifted around 17000 levels while on the upside 17400 levels may act as an immediate hurdle crossing above the same can open the gate for 17500-17650 levels. On the other hand, Bank nifty has support at 38500 levels while resistance at 39800 levels. Overall, the Nifty has closed above the 17200 level and looking bullish for the upcoming session. Every dip should be considered as buying opportunity.”

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