Sensex snaps 3-day losing streak on buying in RIL, bank stocks; Charts suggest bullishness in Nifty

Following favourable economic outcome and positive Asian markets, domestic bourses traded positive today. Image: Reuters

Snapping the three-day losing streak, BSE Sensex ended over 0.75 per cent higher on Tuesday. The 30-share index surged 397 points or 0.76 per cent to finish at 52,770, while the broader Nifty 50 index jumped 120 points or 0.76 per cent to settle at 15,812. Index heavyweights such as ICICI Bank, Housing Development Finance Corporation (HDFC), Reliance Industries Ltd (RIL), Axis Bank contributed the most to the indices’ gain. Market breadth remained positive as 1,854 stocks advanced, while 1,360 scrips declined. BSE Smallcaps outperformed the equity benchmarks. In intraday deals, smallcap index hit a fresh 52-week high of 26,263.03, however, it ended at 26,188.45. BSE Midcap ended flat.

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

The markets are again near the resistance zone of 15900 and if we can get past that on a closing basis, we are in for treat. Conquering the 15900 level would take the Nifty to 16100 which would prove to be the next pit stop for the index. As long as we do not break 15400, dips or corrections can be utilized to accumulate long positions for higher targets.

Gaurav Udani, CEO & Founder, ThincRedBlu Securities

Nifty opened with a gap and managed to be above the gap for the entire day. It opened at 15798.3 made a low of 15758.3 and closed around its high of 15834. This is a bullish sign for traders. Now as long as Nifty trades above its current swing low of 15641, Nifty will test new all-time high. Aggressive traders can look at buying Nifty above today’s high for targets of 16000-16100. Conservative traders can wait for it to close above its current consolidation.

Bank Nifty made a strong bullish candle today. It closed at 35744 above its 2-day high. It has also been making a higher high and a higher low pattern. A volume higher than yesterday would have been a strong bullish confirmation. Traders can wait for it to close above 36000 after which a strong up move to 36500-37000 can be expected.

Sumeet Bagadia, Executive Director, Choice Broking

On the Technical Front, the Index has formed a bullish candle on a daily chart which suggests buyers are active. Moreover, the stochastic & MACD has indicated positive crossover on an hourly chart which adds bullish momentum in the index. Furthermore, the index has moved above the 21&50 HMA, which suggests an upside rally in upcoming sessions. At present, the nifty seems to have resistance at 15915, crossing above the same can shows 16100-16200 levels while immediate support comes at 15700.

Vinod Nair, Head of Research, Geojit Financial Services

Following favourable economic outcome and positive Asian markets, domestic bourses traded positive today. Asian shares sparked a rally after better-than-expected Chinese economic data and a bounce back in Chinese tech stocks. Though June CPI inflation continued to remain above RBI’s tolerance level, it eased to 6.26% from 6.30% in the previous month giving some relief to the market. Industrial production (IIP) for May grew 29.3% YoY essentially due to a lower base.

S Ranganathan, Head of Research, LKP Securities

Bulls were in cruise control today and market breadth was buoyant. Expectations of a good quarter for textile exporters aided by a weak rupee kept several companies in this space buzzing through the day. We also witnessed profit booking in several largecaps and high-quality midcaps that have had a good run-up in the last few months.