Sensex closes with gains, Nifty downtrend still active, bulls to return above 17300-17500

Bank Nifty was up 1.88% and broader markets mirrored the up-move.
(Image: REUTERS)

Bulls forced the domestic benchmarks higher on Wednesday, helped by positive economic data. S&P BSE Sensex jumped 619 points to close at 57,684 while NSE Nifty 50 was up 183 points to settle at 17,166. Both the benchmarks zoomed more than 1% each. IndusInd Bank was up 5.73% higher as the top gainer on Sensex, followed by Axis Bank, State Bank of India, and Tech Mahindra. Dr Reddy’s closed 1.58% lower as the top loser on Sensex, accompanied by Ultratech Cement, Sun Pharma, Bharti Airtel, and Titan. Bank Nifty was up 1.88% while broader markets mirrored the up-move. 

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Nagaraj Shetti, Technical Research Analyst, HDFC Securities –

“The sustainable up-move of Wednesday seems to have lifted hopes for bulls to make a comeback. But, the overall negative chart set-up remains intact and further upside from here could encounter strong overhead resistance around 17300-17400 levels in the next 1-2 sessions, before showing another round of weakness from the highs. Immediate support is placed at 17080 levels.”

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments –

“The markets have been able to record a positive close for the day! However, that does not rule out the current short term bear trend. Unless we do not get past 17400-17500 on a closing basis, every rise should be looked at as an opportunity to short sell the Nifty.”

Rohit Singre, Senior Technical Analyst at LKP Securities-

“Index opened a day with good gap and Managed to close a day on a positive note at 17167 with gains of more than one percent forming a bullish candle on the daily chart. The index has formed two strong hurdle zone on the higher side around 17220-17300 zone until we don’t cross or give decisive close above-mentioned resistance we may not see aggressive buying comes in so said levels will be immediate trend deciding levels & trading below said levels structure will be weak, good support zone formed near 17050-16950 zone.”

Palak Kothari, Research Associate, Choice Broking –

“On the technical front, after a positive opening index traded in range and managed to sustain above 17000 marks as well as 21 HMA which suggest sustained above the same can show upside movement. On an hourly chart, Index has confirmed the Doji kind of candle which points out the confusion between buyers & sellers. At present, the Index has support at 16800 levels while resistance comes at 17350 levels, crossing above the same can show fresh buying interest and the index can test 17500-17800 levels. On the other hand, Bank nifty has support at 35300 levels while resistance at 37000 levels.”

Vinod Nair, Head of Research at Geojit Financial Services –

“After the sharp sell-off in the global markets yesterday, Indian equities reversed its course following recovery in global markets and strong domestic GDP data. India’s Q2 GDP  recorded a growth of 8.4% as economic activity moved towards normalcy after the impact of the second wave. Though the Fed chair’s comment on speeding up the pace of the bond-buying taper plan kept investors cautious along with the concerns of Omicron, the global markets recovered sharply today.”

Arijit Malakar, Head Research (Retail) of Ashika Stock Broking –

“Indian markets closed in positively today on the back of economic optimism. Q2FY22 GDP, core sector output, and fiscal deficit data affirmed that the Indian economy is on the recovery track. India’s economic growth remained robust in the September quarter and it came in line with the estimates. Further, on the COVID front, as per the former head of the advisory group to the Indian SARS-COV-2 Genomics Consortia (INASACOG), a very large number of Indians are likely to remain protected from Omicron or any other variant of Covid-19 and there is no need to panic. Such a statement has boosted the domestic investors’ confidence in the market. Market sentiment was further boosted by strong improvement in November Manufacturing PMI data which came at 57.6 against 55.9 in October.”