Indian equity markets jumped sharply after a three day fall following a bounce in the global markets and return of risk appetite. The Nifty scored the biggest one day gain in 2 months. Nifty opened higher and rose through the day with a brief correction in early afternoon. It finally closed with a gain of 1.23 percent. Almost all sectors ended in the green with the sole exception of FMCG.
While volumes were in line with recent averages, advance decline ratio jumped sharply in the positive. Midcap and smallcap indices rose a little more than the Nifty.
Deepak Jasani, Head-Retail Research, HDFC Securities, said, "Nifty is on the cusp of the down gap area formed on July 19. If this downgap is filled and we move above 15,883, then the path to further upmove opens up towards 15,915-15,962 band."
Sumeet Bagadia, Executive Director, Choice Broking, said, "On the technical front, the Index has formed an Open Bullish Marabozu candle, which suggests strength for the upcoming session. Moreover, the Index has given closing above 21DMA & 50 DMA, which further adds strength in the counter. Hourly Momentum Indicator MACD is also showing positive crossover which suggests strength for the next day. At present, the nifty is having support at 15,600 level while resistance comes at 15,950 levels."
After making a low of of 15,578 on Tuesday, the Nifty gave a pull back and closed at 15,830, up by about 200 points since its last trading session. "There is a divergence in volume since the last close which is not a good sign for bulls.15,830 - 15,880 is a strong resistance zone for Nifty and further up move will come only once it closes above 16,000 levels", said Gaurav Udani, CEO & Founder, ThincRedBlu securities.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd, said, "Technically, the short-term texture of the market is still into the down side. However, today's sharp bounce back indicates the pullback rally is likely to continue if key indices succeed to trade above 20 day SMA or 15,750/ 52,600 level. We are of the view that 15,750/ 52,600 and 15,700/52,400 levels would act as crucial support levels for Nifty/ Sensex. Above the same, pullback rally is likely to continue up to 15,880-15,920/ 53,200-53,400 levels. On the other side, below 15,700/ 52,400, the uptrend texture would be vulnerable."
Buying has returned in the Indian markets supported by decent Q1FY22 earning results and positive global sentiments. Mohit Nigam, Head, PMS - Hem Securities, said, "The market is trading in the range of 15,500 - 16,000 since last few weeks, since Nifty closed at 15,824.05 up by 1.23 percent. there is still scope for the up move in the market. Metal stocks saw traction on cabinet approving PLI scheme for specialty steel while Bharti Airtel shares rose by over 3 percent as the company raised postpaid plan tariff by 30-40 percent. Another telecom stock Vodafone rose 5 percent as the government gave its nod to Rs 15,000 crore FDI investment proposal."