Sensex, Nifty 50 end with gains; analysts advice remaining bullish above 16,350

S&P BSE Sensex scaled above 55,700 earlier in the day but couldn’t hold the lead and closed at 55,555. NSE Nifty 50 closed at 16,496, jumping 0.28%.
(Image: REUTERS)

Dometic benchmark indices started the week on a positive note, ending the day in the green, recovering some of last week’s losses. S&P BSE Sensex scaled above 55,700 earlier in the day but couldn’t hold the lead and closed at 55,555. NSE Nifty 50 closed at 16,496, jumping 0.28%. HCL Tech zoomed 4.37% to end the day as the top Sensex gainer, followed by TCS, Bajaj Finserv, Nestle India, and Bharti Airtel. Mahindra & Mahindra was the worst Sensex constituents today, falling 2.53%. This was followed by Bajaj Auto, Ultratech Cement, Power Grid, and ITC. Bank Nifty gained 0.26% during the day, closing at 35,124. Broader markets underperformed as midcap and smallcap indices on NSE closed in the red. NSE Midcap 50 ended 0.71% lower while the Smallcap 50 closed 2.19% lower. India VIX closed in the red.

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Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments –

“The index continued to face resistance at the 16600 level. We need to get past this to scale higher to 16800-16850 which should be the next target for the Nifty. On the downside, there is good support around 16350-16400. Until we do not break this, traders can accumulate long positions for higher targets.”

Vinod Nair, Head of Research at Geojit Financial Services-

“Heavy selling continued in small and mid-cap stocks, while headline indices traded positive due to strong support from IT stock and positive global peers. The key factor for the correction is the good performance during 2020-21 leading to peak valuations while liquidity is expected to normalise in the future.  The ongoing correction will provide an opportunity for long-term investors to re-enter quality stocks.”

Manish Shah, Founder, Niftytriggers –

“Nifty is in a strong uptrend and when we see a confluence of various support levels, this gives us confidence that the Nifty is poised higher. As long as support at 16350 holds assume the trend to be up and running. Once Nifty breaks above 16580 expect the markets to rally towards 16780-16800 towards the expiry. As the line of least resistance is bullish, this expiry could be in favour of the bulls. Support for Nifty is at 16350 and a break below 16350 and there could be a drop to 16180. Overall, the conditions favor buying, either on a break or at support.”

Rohit Singre, Senior Technical Analyst at LKP Securities –

“Index opened a day with gap up but showed selling pressure since the start of the session and closed a day at 16496 with minimal gains forming a bearish candle on the daily chart. It seems the index is forming a fresh consolidation zone in the range of 16350-16600 zone as last two days we have been witnessed a choppy move in the same range which suggest traders can use the same rage for trading purpose, going forwards immediate support is coming near 16450-16400 zone and resistance is coming near 16550-16600 zone.”

Palak Kothari, Research Associate, Choice Broking –

“On the Technical Front, the index has formed a hammer candlestick on four hourly charts which points out strength for upcoming sessions. Moreover, the Index has taken support from 89-HMA and has been trading above 21&50 DMA, which suggest strength for the upside. Momentum Indicator MACD is also showing positive crossover on daily time frame which further adds strength in the index. At present, the nifty index has immediate resistance at 16600 levels while downside support shifted up to 16350 levels.”

Gaurav Udani, CEO & Founder, ThincRedBlu Securities –

“Nifty gave a strong opening today, it opened at 16592 from where it experienced selling and made a low of 16395 and closed at 16496 up by 45 points. Nifty has resistance in 16550 to16600 range. It has strong support in 16350 to 16420 range. New longs should be considered only on closing above 16550 level with higher than average volumes.”