Bulls return as Sensex zooms 616 points, Nifty closes at 15989, may head to 16200 soon

Bulls return as Sensex zooms 616 points, Nifty closes at 15989, may head to 16200 soon

Bulls were in control on Dalal Street on Wednesday as headline indices soared higher. S&P BSE Sensex opened in the green and closed 616 points or 1.16% higher at 53,750 while the NSE Nifty 50 index closed 178 points or 1.13% higher at 15,989. Bajaj Finserv was the top gainer on Sensex, up 4.54%, followed by Bajaj Finance, Hindustan Unilever, and Maruti Suzuki India. Power Grid was the top laggard, down 1.14%. NTPC, Reliance Industries, L&T, and Tata Steel were the other drags. Bank Nifty zoomed 1.5% to settle at 34,324. India VIX, the volatility gauge, slipped 2.5% but still trades above 20 levels.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities –

Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities

“The index surpassed the level of 16,000 and closed above it which indicates a continuation on the upside towards 16200 levels. The lower-end support stands at the 15,800 level and as long as this support is held the index remains in a buy mode. The Bank Nifty index is comparatively stronger than the nifty and continues to be in buy mode with strong support at the 33800 level. The index is likely to test the upside level of 35,000-35,500 on the upside which coincides with its 200DMA.”

Om Mehra, Technical Associate, Choice Broking –

“Technically Nifty has formed a bullish candle in the daily chart, as it closed above 15950, an important psychological level.  The overall structure shows that the index is likely to rise in the coming days. However, 15900-16200 would be an important range as well for short-term traders. Indicators such as RSI and MACD are showing strength and sustaining above the neutral zone. The Nifty may find support around 15850 followed by 15800 levels while on the upside 16200 followed by 16100 may act as an immediate hurdle. On the other hand, Bank nifty has support at 33800 levels while resistance at 34800 levels. Overall defensive sector such as FMCG and Consumption looks attractive and may deliver decent returns in coming days.”

Mohit Nigam, Head – PMS, Hem Securities –

“As concerns about a worldwide recession gained traction as investors awaited an update from the FOMC meeting minutes, which were coming later in the day, Asian markets were primarily trading in the red. As concerns over a shortage of energy supplies were allayed by the end of the strike by Norwegian oil and gas employees, European markets traded higher. Immediate support and resistance for Nifty are 15,750 and 16,200 respectively. Immediate support and resistance for Bank Nifty are 34,000 and 35,000 respectively.”

Vinod Nair, Head of Research at Geojit Financial Services –

“Softening crude oil prices, FIIs repositioning to net buyers and strong business data from lenders tempered optimism in domestic equities. Crude prices fell over recessionary fears, however, the fall has boosted the appetite for consumption, chemicals, logistics and OMCs as it will reduce the cost burden of these sectors.”