After a negative opening, the Nifty index made an intraday low at 17,640 levels, but bulls took charge and managed to close the session near the intraday high at 17822.30 level with a gain of 131 points.The Sensex was up 445.56 points or 0.75 percent at 59,744.88. About 2025 shares have advanced, 1184 shares declined, and 154 shares are unchanged.
ONGC, IndusInd Bank, Coal India, IOC and Bharti Airtel were among the major gainers. Cipla, Hindalco, Shree Cements, Sun Pharma and Tata Consumer Products were among the big losers.
"Nifty gave a good recovery after making a low of 17,640. However, the volumes were lesser than its average. It closed at 17,822 , up by 130 points. Nifty has support in 17,580-17,620 range and resistance in 19,890-17,930 range . Overall the trend in Nifty is bullish," said Gaurav Udani, CEO and Founder, ThincRedBlu Securities.
Global shares were mixed Tuesday after a broad slide on Wall Street led by technology companies. Shares rose in Paris, London and Hong Kong but fell in Tokyo.
Inflation concerns are weighing on sentiment, with the price of US oil at nearly $78 per barrel, its highest level since 2014. It jumped after OPEC and allied oil producers stuck to a plan for cautious increases in output despite surging global demand for crude.
European shares opened higher after a mixed session in Asia. Germany's DAX picked up 0.3 percent to 15,078.68 and the CAC 40 in Paris gained 0.6 percent to 6,513.04. In London, the FTSE 100 advanced 0.5 percent to 7,048.14. In Asia, Tokyo's Nikkei 225 lost 2.2 percent to 27,822.12 and the Kospi in Seoul dropped 1.9 percent to 2,962.17. The S&P/ASX 200 in Australia declined 0.4 percent to 7,248.40.
Palak Kothari, Research Associate, Choice Broking said, "On the technical front, the Index has formed Bullish Marabozu candle on daily time frame which points out strength in the counter. Furthermore, the index has given closing above 21&50 HMA, which suggests northward direction in the counter. Hourly Momentum indicator MACD is trading with positive crossover above the zero-level line as well as the index is trading above Ichimoku cloud, which indicate upside momentum in the upcoming session. At present, the Nifty has immediate support at 17,580 while resistance comes at 17,950 levels."
Deepak Jasani, Head of Retail Research, HDFC Securities, said, "The global selloff in technology stocks deepened in Asia on Tuesday amid investor fears of higher interest rates and as surging commodity prices fueled concerns about global inflation. Nifty closed at almost the intra day high with high volumes and positive advance decline ratio. Nifty shows good momentum. The next resistance for the Nifty is 17,912-17,948 while the support is at 17,711."
Mohit Nigam, Head - PMS, Hem Securities, said, "The market today was on a complete rollercoaster ride as Nifty50 opened flat, was in red for some time and finally closed in green on the second consecutive day with gain of 131.05 points. All sectors ended up in the green but some weakness was seen in sectors like Nifty PSU, Nifty Realty and Nifty Pharma. On technical front, Nifty50 looks strong with strong support at 17,750 level and can face resistance at 17,935 level. We can see Nifty creating new record highs in near future."
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, said, "The market remained optimistic ahead of the start of the earnings season even as global cues were not supportive. On daily charts, based on post-reversal formation, the index has formed uptrend continuation formation while on intraday charts it has formed promising higher high and higher low series formation which clearly support further uptrend. We are of the view that 17,750 would be the key support level for the trend following traders. If the index rises above the same the uptrend texture is likely to continue up to 17,880-17,900 levels. On the flip side, below 17,750, it may trigger quick intraday correction up to 17,710."
