Metal, financial stocks spur rally in key benchmark indices; Sensex nears 53k

The Nifty opened with a gap-up of 55 points and finally closed with gains of 112 points. Market breadth was strong, but volume was low. On the first day of the week, the range-bound market rallied to the level of 15,845/52,920, which is an upper boundary for the market. However, till the market is not crossing 15,920/53,100 levels, the strong buyers would not enter the market, said analysts.

On the back of SGX Nifty, the market opened on a positive note and consolidated near the day high and closed the session at 15, 834.35 levels with a gain of 112 points. While Bank Nifty closed the session at 35,212 levels with a gain of 402.10 points.

Among the Nifty sector indices, metal and financials gained the most, whereas IT & Pharma closed on a red note. Stock wise, Hindalco, ONGC, SBIN and Tata Steel were the top gainers while HDFC Life, Tech Mahindra, Dr Reddy remained as the top losers.

Sumeet Bagadia, Executive Director, Choice Broking, said, "Technically, the index has confirmed the Hammer candlestick pattern on a daily chart which points out strength in the counter. Moreover, the stochastic & MACD has indicated positive crossover on an hourly chart which adds bullish momentum in the index. Furthermore, the index has moved above the 21&50 HMA, which suggests an upside rally in upcoming sessions. At present, the nifty seems to have resistance at 15, 915 levels while immediate support comes at 15,700," he added.

Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd, said, "On Tuesday, initially the level of 15,900/15,920 (53,100) would act as major resistance and support would be 15,740/52,600. The strategy should be to buy on dips around 15,760/15,710 (52,600/52,500) levels or if the market is closing above the levels of 15,930/53,150.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, "The up move of Monday seems to have confirmed the bullish reversal of Friday and one may expect up move towards 15,900 levels or higher in the next 1-2 sessions. The upside area of 15,900-16,100 is going to be crucial to sustain for the short term. Any lack of strength to sustain the highs is likely to result in another downward correction from the highs. Immediate support is placed at 15,740."

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