Sensex, Nifty snap 3-day losing streak, close with gains; here’s what experts make of today’s trade

Bulls made a comeback on Dalal Street today, helping domestic benchmark indices surge higher amid positive global cues. S&P BSE Sensex ended 638 points or 1.22% higher at 52,837 while the 50-stock NSE Nifty ended 192 points or 1.23% higher at 15,824. Broader markets participated in the rally with smallcap indices outperforming Nifty and Sensex. Bank Nifty closed 0.76% higher at 34,677, while India VIX tanked 10%. Financials and IT stocks were among the top gainers on Sensex as Tech Mahindra zoomed 5.4% to end as top index gainer, followed by Bajaj Finance, Bharti Airtel, and Bajaj Finserv. Only HUL, Bajaj Auto, Asian Paints, and Mahindra & Mahindra closed with losses. 

Deepak Jasani, Head of Retail Research, HDFC Securities –

“Indian equity markets jumped sharply after a three-day fall following a bounce in the global markets and return of risk appetite. The Nifty scored the biggest one day gain in 2 months. While volumes were in line with recent averages, the advance-decline ratio jumped sharply in the positive. Midcap and smallcap indices rose a little more than the Nifty. Nifty is on the cusp of the downgap area formed on July 19. If this downgap is filled and we move above 15883, then the path to further upmove opens up towards 15915-15962 band.”

Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities –

“The market witnessed a robust pullback rally on the weekly expiry day after witnessing a sharp correction in last three sessions. Technically, the short term texture of the market is still into the down side. However, today’s sharp bounce back indicates the pullback rally is likely to continue if key indices succeed to trade above 20 day SMA or 15750/ 52600 level. We are of the view that 15750/ 52600 and 15700/52400 levels would act as crucial support levels for Nifty/ Sensex. Above the same, pullback rally is likely to continue up to 15880-15920/ 53200-53400 levels. On the other side, below 15700/ 52400, the uptrend texture would be vulnerable.”

Vinod Nair, Head of Research at Geojit Financial Services –

“Taking cues from firm global markets, domestic market witnessed robust momentum shrugging off concerns over the spread of Covid-19 and FII selling. Global markets continued to hold onto its gains owing to solid earnings reports and turned its focus on the ongoing European Central Bank’s policy announcement. A confirmation by Fed to continue its supportive policy in the upcoming meet despite rising inflationary pressure will be a key factor in maintaining the direction of the rally.”

Sumeet Bagadia, Executive Director, Choice Broking –

“On the technical front, the Index has formed an Open Bullish Marabozu candle, which suggests strength for the upcoming session. Moreover, the Index has given closing above 21DMA & 50 DMA, which further adds strength in the counter. Hourly Momentum Indicator MACD is also showing positive crossover which suggests strength for the next day. At present, the nifty is having support at 15600 level while resistance comes at 15950 levels.”

Jay Thakkar VP and Head of Equity Research at Marwadi Shares and Finance –

“The Nifty seems to have formed a short term bottom at 15500 levels and now till these levels are not broken the overall bias remains positive. The markets have bounced back from quite oversold territory hence there has been a sharp bounce back however there is a resistance at 15900 levels in the short term so till those levels are not taken off the Nifty can trade within a range of 15900-15700 levels. The Index can see some profit booking, hence we recommend buying on dips near 15700-15650 levels on Nifty. The Bank Nifty however has seen just a three-wave rising strucutre and it reversed from 35000 levels which is acting as a clear resistance in the short term. The Banknifty has been trading quite weak and in the near term it is expected to test the levels of 34000 levels.”