RIL, HDFC Bank lift Sensex over 550 pts, Nifty ends above 14,650; here’s what analysts make of today’s trade

BSE Sensex and Nifty 50 ended over one per cent higher on Tuesday, on the back of across-the-board buying mainly in Reliance Industries Ltd (RIL), HDFC Bank, ICICI Bank, Larsen & Toubro (L&T) and Bajaj Finance. BSE Sensex surged 558 or 1.15 per cent to settle at 48,944, while the broader Nifty 50 index jumped 168 points or 1.16 per cent to close at 14,653. Larsen & Toubro (L&T), Bajaj Finance, RIL, IndusInd Bank, State Bank of India (SBI), HDFC Bank, Bharti Airtel, among others were top index gainers. On the flip side, Maruti Suzuki, NTPC, Kotak Mahindra Bank, Nestle India were top Sensex laggards. All the Nifty sectoral indices ended in the positive territory. Nifty PSU Bank index gained 2.3 per cent, Nifty Metal advanced 2.7 per cent. While Nifty Financial Services was up one per cent.

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

The Index has closed within its resistance zone of 14500-14700. We are at a crucial juncture because if we keep above that patch, we will swiftly move towards 15000-15100. If the market decides to turn at this juncture, we will go down to test the previous lows again.

Mohit Nigam, Head, PMS & Advisory, Hem Securities

After a positive opening, the market moved higher during the day with NIFTY posting gains of over 1% and traded close to 14650 led by Metals and Banks, both trading with gains of above 2%. There was a larger action seen in the mid & small cap space after a long time. Maruti Suzuki delivered below than expected results with Net Income down by about 10% YoY, however company sales soared by 33.6% and it has been on an increasing trajectory since many months indicating a revival in the Auto sector. 14200 on the downside remains a crucial support, a move towards 14850 cannot be ruled out after today’s upmove.

Ruchit Jain (Senior Analyst – Technical and Derivatives, Angel Broking)

The markets have swiftly moved higher from the recent swing low and have surpassed its 20 EMA at closing today. Today, we even saw other sectors and the midcap space showing a decent buying interest and hence, the market breadth was robust. Now, if we join the recent swing highs and lows of this corrective phase, then it is seen that the index is trading in a ‘Channel’ and the higher end of this pattern is at 14720 – 14750. It also coincides with the gap area which was formed on 9 th April. The real test for the bulls will be this resistance and if the market has to march higher towards previous highs, then it needs to surpass this with an authority. On the flipside, any profit booking or correction from this resistance would mean a continuation of the corrective phase. Hence, traders are advised to watch out how the index behaves around this important barrier and trade accordingly. On the lower side, the hourly time frame charts indicate an immediate support now around 14530. Today we witnessed a good participation from the broader markets and if the momentum has to continue, then Nifty will have to break the above mentioned barrier.

Ajit Mishra, VP – Research, Religare Broking Ltd

After a sluggish opening following weak global cues, the Indian markets witnessed a sharp bounce back in today’s trading session. The Nifty index ended with healthy gains of 0.8% at 14,406 levels. The broader markets too witnessed healthy buying interest wherein both BSE Midcap and Smallcap ended higher by 0.3% and 0.6%. On the sector front, except FMCG & Consumer Durables all the other indices traded in green wherein Banking, Metal and Realty were the top gainers. We reiterate our cautious stance in the near term due to rising COVID-19 cases. The updates from the state government’s plans to curb the rising cases would be on investors radar. Further, the earnings announcement from companies is also likely to induce stock specific volatility.

Vinod Nair, Head of Research at Geojit Financial Services

Healthy buying across sectors led by Banking, Metals and Specialty-Chemicals is leading the rally. Stocks are up in anticipation of good quarterly earnings and improved outlook due to a hike in stock prices & demand. Mid & Small caps are outperforming the main benchmark. This is though FIIs continue to be net sellers in the domestic market, due to weak Asian markets ahead FED meeting, it was more than compensated by DIIs & Retail investors.