Sensex, Nifty regain nearly half of Friday’s losses, end near day’s high; check key support, resistance levels

BSE Sensex and Nifty 50 ended higher on Monday in a broad-based buying after the Indian stock market witnessed the biggest single-day drop in the previous session. BSE Sensex ended 750 points or 1.53 per cent higher at 49,850, while the broader Nifty 50 index settled 232 points or 1.60 per cent higher at 14,762. Index heavyweights such as Housing Development Finance Corporation (HDFC), HDFC Bank, Kotak Mahindra Banka and ICICI Bank, contributed the most to the indices’ up move. Sensex hit a day’s high of 50,058 while the Nifty 50 index crossed 14,800 during the trade. The broader market performed in-line with equity benchmarks. S&P BSE MidCap index jumped 1.46 per cent or 292 points to end at 20,270, while the S&P BSE SmallCap index gained 1.61 per cent or 324 points to finish at 20,479.

Vinod Nair, Head of Research at Geojit Financial Services

Domestic markets kick-started the month on a strong footing with increased optimism led by GDP reaching positive numbers, improving auto numbers and steady PMI manufacturing data. The auto sector was in focus today as the sales numbers for February were in favour of manufacturers. Global markets were on its upward rally owing to the much-anticipated US stimulus package being approved and reports regarding the progress in the vaccines.

Shrikant Chouhan, Executive Vice President (Equity Technical Research), Kotak Securities

Today, the market remained volatile moving in a narrow range of 100 points, between 14680 and 14780. It came down from the expected highs but managed to survive at a lower level. It could be due to the massive trading activity on Friday. The market remained bullish in the previous day’s trading range and created a bullish “harami pattern” on the daily chart. Tomorrow may be an important day for the market as the dismissal of 14830 would be extremely positive for the market and the dismissal of 14600 would be negative. Today, unexpectedly, all stocks in the Nifty 50 basket except Bharti Airtel closed in positive territory. Companies in HDFC, HDFC Bank, ICICI Bank and Reliance Industries performed better than expected. Be a level based trader on Tuesday.

S Ranganathan, Head of Research at LKP Securities

Positive global cues and US yields retreating from highs led to a strong opening today with Indices sustaining gains throughout the day. The broader markets saw energetic buying momentum across PSU basket and sectors like Paints & Speciality Chemicals.

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

14820-14950 is a resistance zone for the index. Until we do not get past this, the short term downtrend continues. If we resist and turn around from here, the markets can go down to test 14350-14400. This is a crucial area and stops are wide. Traders are advised caution.