Are Sensex, Nifty out of the woods after yesterday’s rally? 5 things to know before opening bell

Equity indices reversed some of last week’s losses, starting the week and the new month on strong footing. S&P BSE Sensex now sits with 49,849 points while the stock NSE Nifty 50 is above 14,750. On Tuesday morning, SGX Nifty was trading 91 points higher, hinting at a gap-up start for markets, following the positive movement recorded on Wall Street yesterday. But, Sensex and Nifty might not be out of the woods yet. “Technically, we would consider this as a pullback move as of now as we have a ‘Lower Top Lower Bottom’ structure on Nifty and until that is violated again, we are not out of the woods yet,” said Ruchit Jain, Senior Analyst – Technical and Derivatives, Angel Broking.

Global watch: Wall Street enjoyed the first trading session of the month with NASDAQ zooming 3%, followed by a 2.38% jump in the S&P 500, and Dow Jones gained 1.95%. Asian peers were looking to continue yesterday’s positive movement with Shanghai Composite, Hang Seng, KOSPI, and KOSDAQ trading with gains. Japanese equity markets were down in the red.

Technical take: On Monday, Nifty made an inside bar after Friday’s sell-off, according to Deepak Jasani, Head of Retail Research, HDFC Securities. “While this is a mildly positive signal, it needs to soon fill the down gap between 14919-15065 to nullify the recent weakness,” he added. On the other hand, Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities, terms today as an ‘important day’ for the market. Chouhan added that the dismissal of 14,830 would be extremely positive for the market and the dismissal of 14,600 would be negative.

Support and resistance: At this stage, Nifty’s support is placed at 14,450 levels while immediate resistance is at 14,950, according to Sumeet Bagadia, Executive Director, Choice Broking.

FII and DII trades: On Monday, Foreign Institutional Investors (FII) were again bet buyers of domestic securities, pumping in Rs 125 crore. Domestic Institutional Investors (DII) were again net sellers, pulling away Rs 194 crore from equities.

Sings of revival: The government’s GST collection continued to remain robust in February. GST collections came in at Rs 1,13,143 crore in the previous month, 7% higher on-year basis. Along with this, Manufacturing PMI too was steady at 57.5 in the month just marginally lower from the previous month.