In contrast to Monday’s trade, the market sustained after the initial round of profit-taking and quickly reversed back to 15,800/52,700 levels, which is an ultimate resistance for the market. Aided by sharp gains in financials, the market managed to close above the levels of 15,800/52,700.
Benchmark Indices closed on a positive note after favorable economic outcomes and positive sentiments from Asian markets. The rally was mainly led by financial, pharma and auto stocks while some selling pressure is seen in the IT sector.
Nifty Realty and Nifty Infra gained for the third consecutive session. CDSL jumped 16 percent today while Info Edge slipped 4.5 cent ahead of Zomato IPO opening. Mohit Nigam, Head-PMS, Hem Securities said: "Immediate support and resistance for Nifty 50 is at 15,600 and 15,900 respectively. Overall we are bullish on markets and believe that any significant dip is a good opportunity to buy in quality stocks."
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd, said, "It’s a bullish continuation pattern and with the help of it, the Nifty/Sensex would again hit the 15,900/15,930 (53,000/53,100) levels. On a daily basis, 10 and 20 days SMA offered significant support to the short term trend of the market that would act as the final stop loss for holding any long positions. On Wednesday 15,900/15,930 (53000/53100) would be major hurdles and supports would be at 15,730/52,500 and 15,700/52,400 levels," he said.
Sumeet Bagadia, Executive Director, Choice Broking, said, "On the technical tront, the Index has formed a bullish candle on a daily chart which suggests buyers are active. Moreover, the stochastic and MACD has indicated positive crossover on an hourly chart which adds bullish momentum in the index. The index has moved above the 21 and 50 HMA, which suggests an upside rally in upcoming sessions. At present, the Nifty seems to have resistance at 15,915, crossing above the same can shows 16,100-16,200 levels while immediate support comes at 15,700."
Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said, "The short-term trend of Nifty continues to be positive with range bound action. One may expect further upside towards 15,900-15,915 levels in the short term before showing next round of consolidation. The emergence of strength at the hurdle could only open a sharp upside breakout of the resistance in the short term. Immediate support is placed at 15,710 levels."