Sensex zooms over 1200 points! Will the bull run continue?

In a major relief to the investors, the benchmark indices were trading sharply higher on Wednesday amid gains in index heavyweight Reliance Industries and HDFC twins as investors looked at diplomatic efforts to end Russia's attack on Ukraine.
 
The 30-share BSE Sensex opened in the green and further jumped 1,469.64 points or 2.75 per cent to 54,893.73 during the day. It finally settled at 54,647.33, higher by 1,223.24 points or 2.29 per cent.
 
Mohit Nigam, Head - PMS, Hem Securities said buying was seen across the BSE sectoral front, with stocks from the Energy, TECK, and IT counters attracting the most attention.
 
He noted that the general market breadth is in favor of increase today. European markets rebounded as buyers bought stocks that had been battered in the recent market selloff. After Ukrainian President Zelenskyy announced the country was no longer interested in NATO membership, investors bought beaten-down shares in the hopes of de-escalating the Russia-Ukraine war.
 
Also, he added that the net domestic positive flows are currently sustaining the enormous withdrawals observed by FIIs on a daily basis. The robust SIP flow of 11k crore monthly, which continues to expand, accounts for a substantial portion of the positive flows.
 
"On a daily chart, the index has confirmed the Bullish Engulfing breakout, which suggests further bounce for the near term. Moreover, the index also took support at Lower Bollinger Band and moved above it," said Sachin Gupta, AVP, Research, Choice Broking.
"On an hourly chart, the index has formed a rounding bottom and witnessed a positive crossover in RSI & Stochastic," he said.
 
"At present, the index has support at 16,200/16,000 levels while resistance comes at 16,770 levels. On the other hand, Bank nifty has support at 33,200 levels while resistance at 34,500 levels," he added.
 
"Domestic indices carried forward yesterday’s gains following a clawback in European markets and US futures as smart investors saw value in the current market valuations," said Vinod Nair, Head of Research at Geojit Financial Services.
 
"The domestic market is also reacting positively to exit polls and in anticipation of in-line state election results. In the near term, the domestic market will trade as per the positive or negative surprise in the state election results and global trend," he added.
 
"Now looking at today’s price behavior, we can expect an extension towards 16450 – 16600 – 16750 where one should lighten up aggressive longs created in the last couple of sessions and then ideally wait for the next move. On the flipside, 16200 followed by 16000 are to be seen as immediate supports," said Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One Ltd

"We reiterate that although global uncertainty has cooled off a bit and it has not completely eliminated; one should avoid being complacent and keep focusing on global developments. A lot of individual stocks are doing well and it's better to stick to stock centric approach for a while by following proper risk management," he added.