The market made smart gains tracking Asian peers after tepid US jobs data on Friday eased fears of faster rate hikes by the Federal Reserve. The Sensex gained 292.76 points at 35208.14 while the Nifty was up 97.20 points at 10715.50. The market breadth was positive as 1,419 shares advanced against 1265 shares declining.

Among the sectoral indices on the BSE, Metal was up 1.68 per cent, followed by Oil & Gas 1.64 per cent and Realty 1.51 per cent.

Technical view

According to Bonanza Portfolio, “The Nifty has managed to close above previous two closings. The trend remains positive. No major pattern breakdown on the daily chart indicates a continuation of the bigger uptrend. A green candle with significant body following small red candles suggests a return of the bulls in the game.

Price has moved above the 61.80 per cent retracement level (10,706) of the previous fall from a lifetime high of 11,171 to the low 9,951, which may act as an encouraging fact for the bulls going forward.

“In the recent movement, the index found support at 13 exponential moving average (EMA) and moved up. A moving average cross-over analysis also suggests bullishness, as 13 EMA and 50 EMA are in the positive crossover.

“The momentum indicator, RSI (14) is in a bullish crossover with a current reading at 60.02 on the weekly chart, which suggests a possibility of further upsides in the index for the short term.

“Another momentum indicator, MACD is in bullish crossover and hovering above the “Line of Polarity”, which suggests positive momentum in the price in the days to come.

“On the higher end, the Nifty may move towards 10,910 and 11,030 over the short-term. On the lower end, support is pegged at 10,550.

Market view

Vinod Nair, head of research, Geojit Financial Services, said: "The market gained momentum as yield slid after RBI’s open market operation, while the rupee weakened further due to higher oil prices.Results are largely in line with expectation while volatility in rupee and yield and apprehensions about Karnataka election are impacting the pace of rally. Investor sentiment lifted after a tepid US job data, which may slow down Fed’s rate hike trajectory."

—Ashwin Punnen