After a positive opening, the market moved in a range-bound manner, but remained in the green throughout the day. All the sectoral indices ended in a green note.
Sumeet Bagadia, Choice Broking said, "Technically, the Nifty index has faced resistance from the falling trendline as well as the upper band of Bollinger, which suggests crossing above the same can show an upside movement. Moreover, the index has given closing above the 21-Days Moving Average, which points out strength in the index. A momentum indicator RSI &MACD has indicated positive crossover, which supports the bullish trend for the near term. At present, the nifty index is holding support at 14760 levels while an upside resistance seems at 15000 levels," he said.
Mohit Nigam, President, PMS, Hem Securities, said, the markets have continued the last trading day bullish trend after breaching important level of 14,700 in Nifty 50. "If the markets break the level of 15,050 and sustain above this level, this bullish rally might be extended till 15,000-15,200 levels in Nifty 50," he added.
Shrikant Chouhan, Executive Vice President (Equity Technical Research), Kotak Securities, said, although the market closed one percent higher, it was more stock-specific. ".In the near-term, Nifty / Sensex is heading for the levels of 15,050/49,800 on the minimum side and 15,150/50,100 on the maximum side and the final strategy should be to buy minor dips," he added.
RBI's relief to postpone financial stress from Covid-19
There are growing indications that India's latest wave of COVID-19 infections will add to risks among financial institutions (FIs) by sapping near-term momentum from the economic recovery, according to Fitch Ratings.
Measures announced by the Reserve Bank of India (RBI) on May 5 will provide some relief to FIs in the next 12 to 24 months, but largely at the expense of postponing the recognition and resolution of underlying asset-quality problems. "We expect the shock to economic activity from the latest wave of the pandemic to be less severe than in 2020 even though caseloads and fatalities are much higher," said Fitch.