The stock market indices closed positive on Tuesday (December 7). Indian markets mirrored the sharp buoyancy in global indices on the back of short covering by market participants. The rally was backed by a sharp upsurge in banking and metal stocks, which had taken a severe hammering in recent sessions.
At close, the Sensex was up 886.51 points or 1.56 percent at 57,633.65, and the Nifty was up 264.40 points or 1.56 percent at 17,176.70. About 2,278 shares have advanced, 924 shares declined, and 114 shares are unchanged.
Gaurav Udani, CEO & Founder, ThincRedBlu Securities, "Since the last few days Nifty has been trading in a broad range of 17,300 and 16,900. Today Nifty made a high of 17,251 and closed at 17,175 up by 260 points since yesterday's close. A break in any direction of the range will decide the next move in Nifty. As of now Nifty has a negative bias and may test 16,800 in the next few trading sessions."
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said, "Post-reversal formation, the Nifty has formed a promising bullish candle. On intraday charts, the index has also formed a higher bottom formation which indicates a short-term uptrend. The uptrend wave could continue in the near future but due to overstretched intraday momentum, the market may consolidate within the range of 17,075-17,280 price. On the flip side, below 17,075, the uptrend would be vulnerable."
Mohit Nigam, Head-PMS, Hem Securities said, "European markets too have started trade on a positive note. DAX 30 and CAC 40 have jumped 1.5 percent each. US markets ended higher on easing concerns over Omicron after reports indicated that the new COVID variant is less severe and potential economic impact may not be very high as feared earlier. Vaccination also continues at a good pace. Vaccination coverage in India currently stands at 49% for both doses and 85 percent for the first dose. Rate Gain Travel Technologies has been subscribed 16 per cent so far with the retail portion nearly fully subscribed.
"Investors will be keeping a close look at tomorrow’s RBI MPC Meeting and from thereon we can see the next movement of the market. Immediate support and resistance for Nifty 50 is 16800 and 17300 and for Bank Nifty is 35700 and 37,000."
Deepak Jasani, Head-Retail, HDFC Securities said, "Nifty reversed the losses of the previous day on December 7 and posted the biggest single day gain since September 23, 2021. Nifty opened gap-up and rose through the day to end a little off the intra day high. At close Nifty was up 1.56 or 264 points to 17176.7. Volumes on the NSE was lower than recent average. There were no sectoral losers while Realty, Metals and Banks were the main gainers among sectors. BSE Midcap and Smallcap indices underperformed slightly, rising 1.1-1.3 percent."
Nifty clawed back most of the losses of the previous day on Dec 07.16,983 could now be the support for the Nifty while 17,401 could be the resistance. The way the advance decline ratio has improved suggests a few more days of upward moves in the Nifty, though the pace could slow, Jasani said.
(To receive our E-paper on whatsapp daily, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)