Indian benchmark indices ended higher for the second consecutive session on Tuesday with Nifty finishing above 15,600. At close, the Sensex was up 934.23 points or 1.81% at 52,532.07, and the Nifty was up 288.60 points or 1.88% at 15,638.80. All the sectoral indices ended in the green with IT, metal, oil & gas, power, realty and PSU Bank up 3-6 per cent. BSE Midcap index jumped 2.4 per cent and Smallcap index was up 3 per cent. While the overall market set up continues to remain ‘Sell on rise’, intermittent bouts of relief rally can’t be ruled out, according to analysts. Immediate support and resistance for Nifty50 is 15,400 and 15,800 levels
Deepak Jasani, Head of Retail Research, HDFC Securities
“Fall in crude oil prices, positive global cues, bottom fishing and technical setup ripe for a bounce are the reasons for the rise in the markets today. 15670-15740 could be a near term resistance for the Nifty. Investors can ride this bounce through trading in oversold stocks and prepare a list of stocks that they would like to offload in this bounce to raise cash. Sell on rise is a good strategy to follow unless we see signs of inflation stabilising and reversing globally which can be an early sign of bottom formation.”
Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services
“Markets witnessed the much needed relief rally today after posting the worst weekly loss in 2 years. Positive global cues, fall in crude oil prices and short covering in derivatives segment drove the markets. Further, Value buying in beaten down sectors also helped market to gain some momentum today. Globally equity markets continue to remain worried over the expected aggressive rate hikes by central banks to curb record inflation and its impact on economic growth. However, on the positive side, crude prices have corrected by almost 10% from its recent peak, providing some breather to the Indian market. While the overall market set up continues to remain ‘Sell on rise’ – intermittent bouts of relief rally can’t be ruled out. Given the hawkish commentaries from Central banks and record high inflation, rate hike cycle is likely to continue over the next couple of months and would keep markets jittery. “
Mohit Nigam, Head – PMS, Hem Securities
“Local equity markets enlarged their gains in the late afternoon session. On the technical front, immediate support and resistance for Nifty50 is 15,400 and 15,800 levels. In case of Bank Nifty, 32,700 may act as immediate support and 33,700 may act as immediate resistance level.”
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