Sensex, Nifty snap losing streak to end in green; up-move may continue further

Dalal Street staged a strong comeback on Monday, recouping some of last week’s losses, as benchmark indices Sensex and Nifty 50 each ended almost 1% higher. S&P BSE Sensex gained 533 points to 0.91% to end at 59,299 while the Nifty 50 index jumped 159.20 points or 0.91% and settled at 17,691. Broader markets outperformed. NTPC was up 4.25% as the top Sensex gainer on Monday, followed by Bajaj Finserv, State Bank of India, and Bajaj Finance. Bajaj Auto was the worst-performing stock, down 0.78%, followed by HUL and Nestle India. Chartists believe Nifty’s trend is positive and advise investors to remain bullish. 

Deepak Jasani, Head of Retail Research, HDFC Securities –

Nifty snapped a four-day losing streak on Oct 04 and ended higher. Nifty has formed a bullish morning star pattern though its placement is normally after a deep/prolonged sell-off. Advance decline ratio is also sharply positive. Nifty could continue its uptick and remain in the 17576-17781 band for the near term.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities-

“After retreating sharply in previous four sessions, buying resumed on the street on the back of mixed global market cues. Benchmark Nifty hovered between 17645 to 17750 after a strong opening. Technically, one more time the Nifty took support near the 20 day SMA and reversed sharply. The index has formed a promising reversal formation which is broadly positive. The 17600 level or 20 day SMA would act as a crucial support level for the day trader. Above the same, the uptrend momentum is likely to continue up to 17800-17850 levels, while below 17600 the uptrend would be vulnerable.”

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

“The markets failed to close above 17700; if we manage to do that, the short-term skepticism would be removed and the Nifty can scale higher towards 18000. The support lies at 17400 and as long as that holds, the current trend is bullish and we can utilize intra day corrections to accumulate long positions.”

Rohit Singre, Senior Technical Analyst at LKP Securities –

“Index opened a day with good gap & managed to hold its bullish stream throughout the day with given close at 17691 with gains of nearly one percent and formed a bullish candle on the daily chart. The index has seen a good pull back from its support zone of 17450 zone & now going forwards 17650-17600 will be immediate support zone if managed to hold above-said levels we may see the index to touch its immediate hurdle zone of 17760-17830 zone, again overall range is coming in between 17300-18000 zone either side breakout will decide the final direction.”

Vinod Nair, Head of Research at Geojit Financial Services –

“After a week-long consolidation, the Indian market is back in action despite unfavourable global sentiments. The momentum is driven by the expectation of better Q2 earnings backed by recovery in economic activity, second wave fallout not being severe and in anticipation of a better outlook from festival demand. The IT sector was under consolidation before the start of quarterly results, which has led to a marginal uptick as major companies are scheduled to announce their results, which can emerge as an opportunity if the results are in line with the robust outlook. RBI Monetary Policy Meeting is another key event that is being keenly watched by the market which is expecting no change instance”