Equity benchmark Sensex rallied 403 points to end at a fresh record on Tuesday, driven by gains in index majors HDFC Bank, ICICI Bank and Bajaj Finserv amid a positive trend in global equities. The 30-share index ended 403.19 points or 0.73 per cent higher at its lifetime peak of 55,958.98. Similarly, the broader NSE Nifty surged 128.15 points or 0.78 per cent to its all-time closing high of 16,624.60.
"Nifty made a bullish bar today. It closed at 16,615 up by 120 points. It closed above its key resistance of 16,550 but however the volumes were lesser than its average volumes. Nifty now has support on 16,600 and 16550 and will face resistance at 16,700 and 16,750. Buy on dips can be a good strategy for the current markets," said Gaurav Udani, CEO & Founder, ThincRedBlu Securities.
Sachin Gupta, AVP, Research, Choice Broking, said, "On the technical front, the Index recovered after a further correction and managed to trade above 16,500 marks. Overall, the index is in a bullish trend and trading upward continuously with higher high and higher low formations from the last couple of days. On four hourly charts, the index has taken immediate support at Middle Bollinger Band formation, which indicates further positive moves. However, still, there is a hurdle at around 16700 levels which may act as an immediate resistance zone. Above that, can expect 16,800/16,850 levels in the nifty index while on the downside, the support comes at 16,400 levels."
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd said, key benchmark indices maintained positive momentum for the second straight session on the back of a strong undercurrent in financials, metals and oil and gas stocks. The texture of the pullback rally indicates the index is likely to consolidate between 16,500 to 16,720 levels. In addition, on the intraday chart, the index has formed a higher bottom formation which suggests further uptrend from the current levels. As long as the index is trading above the 10 day SMA or 16,500 level, the uptrend wave is likely to continue up to 16,700-16,750 levels. On the flip side, the index would be vulnerable below 16,500."
A bounce in China's tech sector led Asian stocks higher on Tuesday and markets were also cheered by positive USvaccination news and easing worries about an imminent tapering of stimulus by the Federal Reserve, said Deepak Jasani, Head-Retail Research, HDFC Securities. European stocks were mixed on Tuesday after a full US approval of a COVID-19 vaccine boosted Wall Street to record highs, while latest data showed a stronger-than-expected economic recovery in Germany.
"Nifty bounced up well over the past two days and on August 24, it filled the down-gap formed on Friday on closing basis. Advance decline ratio also improved dramatically to the highest since August 12. Nifty is just 76 points away from the all-time high formed on August 18. More than the Nifty, focus will remain for some time on the broader markets, as to how much does the broader market recover when the Nifty is near all-time highs."
