Buying interest in the stock markets today was inevitable given the Central and State governments initiatives. The global help to fight the rising number of COVID infections in India too aided the buying interest witnessed on the bourses on Tuesday, said Abhishek A Rastogi, Partner at Khaitan & Co. “This resulted in a gain for banking, realty and metal stocks. The market may remain volatile even due to April F&O expiry. Close watch must continue on banks and pharma”, he said.
The stock market closed on a positive note on Tuesday led by strong gains in metals, banks and auto stocks. The Sensex surged 557.63 points, or 1.15 percent to 48,944.14. The Nifty closed 168.85 points, or 1.17 percent higher at 14,653.85. All the sectoral indices ended in the green with Nifty Metal and Nifty PSU rallying over 2 percent each followed by pharma, auto, financial services and IT indices. Hindalco Industries, Tata Steel, Larsen & Toubro, Divi's Laboratories and Bajaj Finance were the tp Nifty50 gainers, while HDFC Life Insurance, SBI Life Insurance, Maruti Suzuki, NTCP and Nestle India were the top index losers.
After a positive opening, the market moved higher during the day with NIFTY posting gains of over 1 percent and traded close to 14650 led by metals and banks, both trading with gains of above 2 percent. Mohit Nigam, Head, PMS & Advisory, Hem Securities, said there was a larger action seen in the mid & small cap space after a long time. Maruti Suzuki delivered below than expected results with net Income down by about 10 percent YoY. However, company sales soared by 33.6 percent and it has been on an increasing trajectory since many months indicating a revival in the auto sector. 14,200 on the downside remains a crucial support, a move towards 14850 cannot be ruled out after Tuesday's upmove, Nigam said.
The market not only crossed the resistance mark but even traded above 14550/ 48600 levels which is grossly positive for the Nifty /Sensex, said Shrikant Chouhan, Executive Vice President (Equity Technical Research), Kotak Securities. A modest broader market participation and strong performance from Metal, PSU Banks and selective financial stocks helped trades to maintain a long stance over short.
Technically, the Nifty has held a level of 14550/48600 which suggest bulls are in total control and would like to take this ride towards 14750-14800/ 49300-49800 levels. Chouhan said, "at above 14550/ 48600 levels, we may see a pullback rally to continue up to 14,700-14,750/49,100-49,300. There is a possibility of a further upside that may continue to push the index upwards, till 14,800/49,800," he added.
On the flip side, dismissal of 14,550/ 48,600 could open one more leg of correction up to 14485/ 48200 levels, Chouhan said.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities said a long bull candle was formed, which signal an emergence of strong buying in the market. After showing higher levels weakness at the immediate hurdles for few occasions, Nifty finally showed initial sign of strength today by closing above the hurdle of previous opening downside gap around 14600 levels (19th April). This is positive indication and signal more upside in the near term.
"The display of strength on Tuesday (by closing above the immediate resistance) and also a false downside breakout of the lower range at 14200 levels (22nd April) could signal that the market is ready to move up further and test the upper range of 14900 + in the near-term," he said.