Will Sensex, Nifty continue their standing ovation for Budget or was it just a one day show?

Union Budget 2021 got a standing ovation from the benchmark indices on Dalal Street yesterday as bulls once again zoomed higher and even higher. S&P BSE Sensex skyrocketed a massive 2,314 points or 5% to close at 48,600 while Nifty 50 added 646 points to breach 14,200 once again. Looking to carry the momentum further, SGX Nifty was trading 100 points higher on Tuesday morning, hinting at a gap-up start for equities. Wall Street ended with gains on Monday with NASDAQ surging 2.5%. Similarly, Asian peers were up in the green during the early hours of trade. 

What do the charts say: The overall trend on Dalal Street saw a turnaround on Monday. “A long bull candle was formed on Monday, that has engulfed the last three sessions weakness in one day. This pattern could be considered as a strong comeback of bulls, after six sessions of weakness,” said Nagaraj Shetti, Technical Research  Analyst, HDFC Securities.

Support and resistance levels: The previous resistance levels were broken by the broader Nifty 50 index during yesterday’s trade. “The strategy would be to buy in the market if it corrects to 14200. The Nifty would move above to the level of 15300 if it crosses 14800 levels,” said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities. Now, immediate support for Nifty 50 is near 14200-14070 zone, according to Rohit Singre, Senior Technical Analyst at LKP Securities. He adds that holding above the said levels may result in the pull back to continue and resistance is placed at 14400-14500 zone.

Global Watch: NASDAQ zoomed 2.55% on Monday while S&P 500 and Dow Jones followed. Among Asian stock markets, KOSPI was up 2.3%, followed by KOSDAQ. Nikkei 225, TOPIX, and Hang Seng were also trading with gains. Shanghai Composite was flat with a negative bias.

Indigo Paints listing: Shares of Indigo Paints will make their stock market debut today. The recently concluded initial public offering (IPO) was subscribed 117 times by investors in January this year, making it one of the most appealing IPOs this fiscal year. In the unlisted space, Indigo Paints shares were commanding a strong premium yesterday as stock markets zoomed 5%.

Results today: Dixon Technologies, Alchemist Corporation, Gujarat State Fertilizers & Chemicals, HDFC, IIFL Wealth Management, Neuland Laboratories, NOCIL, Tata Consumer Products, Ajanta Pharmaceuticals, and PI Industries are among some of the companies that will report their quarterly results today.