The market continued its uptrend on Thursday on the back of strong global cues after taking a pause on Wednesday. The Sensex gained 95.61 points, or 0.28 per cent, to close at 34,427 and the Nifty 50 Index added 39.10 points, or 0.37 per cent, to end at 10,565. The BSE Mid-Cap and Small-Cap indices outperformed the Sensex.
Among the sectoral indices on the BSE, Metal was up 4.46 per cent, Basic Materials 2.76 per cent and Capital Goods 1.06 per cent.
Technical view
According to Bonanza Portfolio, the Nifty ended the day with a Doji kind of formation, which suggests indecisiveness. The index has been mostly sideward for the last three days, indicating waning bullishness. However, the short term trend remains positive, as recently 13 EMA (exponential moving average) has cut 50 EMA from below, which indicates a bullish trend. Also, the index has moved above 50 per cent retracement of the previous fall from all time high of 11,171 to the recent low of 9,951, which means bulls have made the half way to the top.
“On the higher end the Nifty may move towards 10,706 (61.80 per cent retracement of the previous fall from 11,171 to 9,951). Again sustained trades above next resistance of 10,706 may unleash the index for a rally towards 10,910. Crucial support is seen at 10,330 for the short term.
Market voice
VK Sharma, head private client group & capital market strategy at HDFC Securities, said: “The Nifty is back to its winning ways. Quarterly results are driving the market. ACC’s management expect increased govt spending on infrastructure development to reinvigorate the construction sector and boost demand for cement and concrete during 2018. It is also very encouraging to see robust growth in domestic airlines passenger market….10,700 is near term resistance for the Nifty, while a strong support lies at 10,300 levels.
—Ashwin Punnen