Sensex surged nearly 359 points to close above the 52,300-level on Thursday, with financial, pharma and IT shares gaining the most amid positive global cues. NSE Nifty climbed 102.40 points or 0.65 per cent to end at 15,737.75.
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities, said the market has formed an “inside body” candlestick formation on the daily chart that acts as bullish continuation formation, especially if the market breadth is exceptionally strong. Compared to each of the negative closing of the stock in the market on Thursday, the closing of three stocks were positive and all sectors closed in positive territory. This is a completely opposite image of the previous day, he said.
"The market closed at 15,738/52,300 which is above the previous day's average level. Also, there was support from financial institutions with the potential to take the market to the level of 16,000/53,000. Apart from that, 15,600 and 15,550 will be big support," Chouhan added.
Sumeet Bagadia, Executive Director, Choice Broking said, on a weekly expiry day, the Index opened on a positive note but made an intraday low at 15,648.50 levels but bounced and closed the session above 15,700 levels at 15,737.75 with a gain of 102.40 points. Technically, the Index has formed a Bullish Harami Candlestick on a daily time frame, which suggests strength in the index. Moreover, the index has taken support from 50-EHMA and closed above the same, which suggests a positive move for upcoming days. A momentum indicator MACD is also trading with a positive crossover as well as above the zero lines. At present, the Nifty seems to have resistance at around 15850 levels while immediate support shifted up to 15,600 levels, Bagadia said.
Mohit Nigam, Head, PMS, Hem Securities, Benchmark Indices closed on a positive note with Sensex closing at 52,300.47 (+0.69 percent) and Nifty 50 closing at 15737.75 (+0.65%). Nifty 50 gave closing above an important level of 15,700 and trading above 15,700 is positive from a short-term perspective. Strong buying interest is seen in financial, pharma, metal and realty stocks while some selling pressure is witnessed in selected auto and consumer durable stocks. Immediate resistance levels for Nifty 50 are 15850 and 16000 while key support levels for Nifty 50 are 15500 and 15300, Nigam said.