Benchmarks indices continued their winning momentum for the third straight session on Thursday amid positive global cues and assembly election results.
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Sensex closed at 55,464.39, rising 817.06 points or 1.50 per cent. Nifty jumped 249.55 points or 1.53 per cent to close at 16,594.90.
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Dr. Ravi Singh, Vice President & Head of Research, Share India Securities said, “Domestic markets have already responded to the outcome of the state elections, far in advance of the official results. The BJP-led Yogi administration is on the verge of gaining a clear majority in one of the most politically crucial states in India, Uttar Pradesh, and other states, with the exception of Punjab, are also indicating favourable advances for the BJP.”
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“However, the market’s resurgence is attributed not just to state elections, but also to good developments in the Ukraine situation. The election effect appears to be transient, but if the Ukraine crisis continues to improve, we may witness a market reversal. To indicate a definite trend reversal, the Nifty must remain above 16,800 for a few days,тАЭ he added.
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тАЬInvestors should not consider the markets to be very bullish; rather, consider them steady. Maintaining a strict stop loss of closure below 15,000 in the nifty as a support, investors should hold onto their current positions. They should refrain from taking new positions. Sectors that should be focused on in the near future should be EVs, aviation, and food and water resources,тАЭ Sudhanshu Singh – Director IBBM (MoneyMakers India Securities) told Business Today.
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Sharing the technical view, Palak Kothari, Research Associate, Choice Broking said, “Index has covered the Gap and bounce from the 89-HMA which suggest bounce back in the counter. On the Four-Hourly Chart, the index has formed a Hammer Candlestick pattern which points out northward direction in the counter.”
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Moreover, she highlighted that the index has given closing above 21 and 50 HMA which adds strength to the price. Momentum indicator is trading with a positive crossover which adds strength for the next day. At present, the index has support at 16,400 levels while resistance comes at 16,900 levels. On the other hand, Bank nifty has support at 33,700 levels while resistance at 35,000 levels.
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Mohit Nigam, Head – PMS, Hem Securities noted that the market’s optimism has been fueled by the prospect of a favorable outcome from the Russia-Ukraine talks. Another encouraging development occurred when OPEC+ member the United Arab Emirate stated that it supports pouring more oil into the markets, which are experiencing a supply shortage due to US sanctions on Russian oil.
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He added that if OPEC+ countries agree to raise output, crude oil gains could be limited in the ensuing session. The BJP’s strong showing in the state elections encouraged the bullish mood even further.
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“On the global front, Asian markets were trading firm, following Wall Street’s overall upbeat cues overnight, amid slightly easing inflation fears as commodities prices fell. Investors should stay cautious because the geopolitical stalemate remains unpredictable, but they can consider buying shares for long-term goals,” he said.
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On the technical front, he mentioned that the immediate support and resistance in the Nifty are 16,200 and 16,800. For the Bank Nifty, immediate support and resistance are at 33,500 and 35,500.
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One Ltd said, “Going ahead, we expect some consolidation in key indices, and a lot of adjustment would continue to happen in individual stocks. As far as levels are concerned, 16700 тАУ 16750 remains to be a key hurdle and any sustainable move above this would confirm TuesdayтАЩs low as a bottom (the last three daysтАЩ sharp up move has already given an early indication of it). On the flipside, 16450 followed by 16200 are to be seen as immediate supports.”
“Since the current situation is connected to a war kind of scenario, we are waiting for further confirmation beyond certain levels but practically, we have already changed our stance in the last couple of sessions. For the coming session, in case of index consolidation, one should focus on stock-specific moves, which are likely to continue and can provide excellent trading opportunities,” he added.
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