Sensex surges 2,100 points in 3 days. More upside in near term?
Premium- Stock market news: Sensex jumped over 1,000 points while Nifty rose nearly 2% today
Indian stocks markets ended higher for a third straight session on Monday, riding on gains in technology stocks and Reliance Industries. The NSE Nifty 50 index closed 1.89% higher at 16,661.40, while the S&P BSE Sensex ended up 1.9% at 55,925.74. The Sensex is up over 2,100 points in just 3 sessions. The global sentiment was also positive as China began easing lockdowns in Shanghai.
Mahindra and Mahindra rose 5% to a record high after it reported a 48% jump in quarterly profit. Technology stocks rose for a third session to notch a gain of 3.9%. IT stocks had taken a beating in recent months on worries that inflation, supply chain issues and the impact of the Ukraine war on client spending.
“Markets have regained some strength citing the less hawkish tone of the US Fed in the recently released meeting minutes. On the domestic front, the early onset of monsoon has further lifted sentiments. Going forward, with earnings season largely behind us, upcoming macroeconomic data i.e. GDP numbers and PMI data and auto sales will be in focus for cues. Amid all, we reiterate our positive view and suggest maintaining “buy on dips" till the Nifty holds 16,300," said Ajit Mishra, VP - Research, Religare Broking Ltd.
The broader markets too witnessed healthy traction wherein Midcap and Smallcap ended higher by more than 2% each. India's March quarter GDP numbers will be announced tomorrow.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said: "Technically, in the last three days, the Nifty has rallied nearly 800 points and cleared the 16400 resistance level which is broadly positive. For traders, 16500 would be the trend decider level, above which the positive momentum is likely to continue till 16750-16800. Below 16500, uptrends would be vulnerable. Any further retracement could see the index retest the level of 16440-16420."
Among other Sensex stocks, Titan rose 5%,Infosys by 4.5%, L&T 3.7% and Tech Mahindra by 3.5%. Index heavyweight RIL and TCS also soared over 3%.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said the next upside levels to be watched at 16900-17000 levels. “A long bull candle was formed on the daily chart with gap up opening. Technically, this action indicate an upside breakout of the consolidation pattern at 16400 levels. This is positive indication and signal more upside for the short term," he added.
Deepak Jasani, Head of Retail Research, HDFC Securities, says: “Nifty rose for the third consecutive session on May 30 following positive global cues due to China easing Covid curbs and sharp Friday gains on the Wall street. Indian stocks were anyway due for a bounce after continuously underperforming since early April 2022. 16800-16850 level on the Nifty could be tough to breach in the near term."
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