Nifty surges past 16,100, Sensex above 53,800 as bulls take charge; here’s what experts make of today’s trade

BSE Sensex and Nifty 50 ended at a record closing high on Tuesday, lifted by solid buying in FMCG and financial stocks. The market capitalisation of BSE-listed companies jumped to a record high of Rs 240 lakh crore. BSE Sensex ended at fresh record closing high of 53,823.36, up 872.73 points or 1.65 per cent. Nifty 50 ended 242 points or 1.52 per cent higher at record close of 16,126.65. During the intraday deals, Sensex hit a record high of 53,888 and Nifty 16,146.90 levels. India VIX, the volatility index, surged 7.36 per cent to settle at 13.75 levels. The broader market underperformed the equity market benchmarks, even after surging to record high levels during the day.

Sumeet Bagadia, Executive Director, Choice Broking

On the technical front, the index has finally given a breakout of 16000 phycological levels and given closing above the same suggests a bullish movement in the upcoming day. Furthermore, the Index has given breakout above the Upper Band of Bollinger, which signifies strength for the next session. Momentum indicator MACD has also shown positive crossover on the daily time frame which suggests an upside rally in the counter. On a daily chart, the Index has formed Bullish Marabozu Candle, which adds strength to the counter. At present, the nifty support shifted to 15800 level while resistance comes at 16150 levels.

Vinod Nair, Head of Research, Geojit Financial Services

Progressive economic data indicates a strong rebound from impact of the second wave. All major domestic data like PMI index, GST collection, corporate earnings, export data, etc favour a strong recovery. This has added euphoria in domestic market reaching new highs along with context to a drop in global risk after the accommodative monetary & fiscal policy announcements. A similar monetary policy is expected from ongoing RBI meeting.

Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty brushed past through 16000 levels easily and closed higher. However, volumes and AD ratio (equal on such a day) do not give confirmatory signals. However, momentum is in favour. Hope that India will be a beneficiary of the recent troubles faced by China is keeping sentiments upbeat. While valuations seem high, there is no point in pre-empting a top, but rather wait for signs of medium-term change in trend.

Sneha Poddar, AVP – Research, Broking & Distribution, Motilal Oswal Financial Services

Nifty today finally managed to break its two-month-long consolidation to touch the most awaited level of 16k. It had shown strong resilience since the start of June and moved in a very narrow range despite weak global cues and finally managed to leap forward towards 16000 zone. What really provided support to the market was the 1QFY22 earnings report which begun on a very healthy note despite the Covid 2.0 impact. It helped the market to largely sail through the headwinds of a possible third COVID wave, commodity led inflation and volatility around the US Fed taper talk. The damage from the second COVID wave and the consequent lockdowns in April’21/May’21 has been much lesser than that from the 1QFY21 national lockdown. Management commentaries across the board suggest an improved demand environment post June’21, led by the easing of restrictions, lower active COVID-19 cases, and a pickup in vaccinations. We estimate corporate earnings to continue to recover, as the underlying economy opens up, with progressively higher vaccination trends, thus offering many bottom-up opportunities.

Ronak Gala, Fund Manager, AlphaQuest by tarrakki

Markets touching all time high is a combination of various factors including global liquidity, decent operational performance multiple sectors and various government support schemes. However one should not get carried away by the buoyancy in the markets as some signs of stress are visible too. Most notable among them are the high provisions done by most banks in Q1FY22. So a sensible strategy is to focus on segments in the markets which are facing genuine tailwinds and are still available at reasonable prices.