Bulls vs Bears: Here’s what to expect on Dalal Street today

The Indian market staged a stellar recovery in the previous session, backed by positive global cues. The 30-stock Sensex ended 1,534.16 points higher to end at 54,326.39. Nifty zoomed 456.75 points to 16,266.15.

All Sensex stocks ended in the green.

Dr. Reddy's Labs, Reliance Industries, Tata Steel, Nestle, Larsen & Toubro, Axis Bank, IndusInd Bank, Sun Pharma, State Bank of India, and HDFC were the top Sensex gainers, rising up to 8.10 per cent.

Friday’s rally helped Sensex and Nifty snap their five-week losing streak with a gain of around 3 per cent.

However, the benchmark indices are still in the red in 2022 led by negative global cues. While Sensex has lost 6.74 per cent or 3927 points, Nifty is down 6.27 per cent or 1087 points.

On a yearly basis, Sensex has gained 9.61 per cent or 4761 points and Nifty has climbed 9.12 per cent or 1360 points.

With global markets turning positive, the domestic indices are likely to reduce their losses in the near term. Here’s a look at what analysts said about the direction Sensex and Nifty are likely to take in the upcoming sessions.

Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities said, "The daily timeframe of Nifty indicates that the index has made a double bottom around the 15735 levels. A move above the recent swing high of 16400 could lead to further upsides in the coming week. While we remain open to further pullback rallies in the very near term, we must remember that the intermediate trend remains down. The bears would gain more control once the recent intermediate low of 15735 is broken. Till then, enjoy the rally till it lasts."

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities said, "Markets remained wary of global growth-inflation expectations. With result-season coming towards the last leg, the focus will be more on the macro data points. Monetary policy tightening action by central banks globally amid high inflation will continue to weigh on market sentiments.”

Ajit Mishra, VP Research, Religare Broking said, "We expect choppiness to remain high due to the scheduled monthly expiry. Besides, the monsoon-related updates will also be in focus. In line with the prevailing trend, global factors like performance of global markets especially the US, China’s COVID update and Russia-Ukraine news will remain on participants’ radar. Markets have been witnessing wild swings within the 15,700-16,400 range and currently trading closer to the upper band. Participants should wait for a decisive close above 16,400 to change the bias. In case of a breakout, the 16,650-16,800 zone acts as a hurdle. Among the sectoral indices, defensive stocks like FMCG and pharma look poised to surge further while others may continue to trade mix. Traders should align their positions accordingly and maintain positions on both sides."

Also read: Sensex, Nifty snap 5-week losing streak; has the market hit bottom?

Also read: What a comeback! Bulls roar on D-Street; will the run continue?