Sensex, Nifty end with gains for second day straight; here’s what experts make of today’s trade

Dalal Street moved higher on the weekly expiry session.
(Image: REUTERS)

Dalal Street moved higher on the weekly expiry session. S&P BSE Sensex jumped 272 points and closed at 48,949 while the Nifty 50 index gained 106 points to breach 14,700. Bajaj Auto and HDFC were the top gainers on Sensex, both surging more than 2% each. On the other hand, Power Grid, ONGC, and Asian Paints were the top laggards. India VIX traded in the negative for most of the day but closed with marginal gains. Among sectoral indices, only Nifty Pharma, Nifty PSU Bank, and Nifty Private Bank indices closed in the red.

Deepak Jasani, Head of Retail Research, HDFC Securities

“Indian benchmark equity indices rose for the second straight day following healthy global cues. The Nifty opened higher and kept making higher tops higher bottoms through the day. Asian shares rose on Thursday and commodity prices held near multi-year highs as investors switched to cyclicals amid expectations of a strong economic recovery. Nifty moved above the high of May 04, thus signalling that the May 03 bottom of 14416 is a short term bottom. The next resistance for the Nifty is at 14846 while the support is at 14601. FPI selling seemed to be subdued today, while local traders continued to ramp up prices of select small and midcap stocks.”

Vinod Nair, Head of Research at Geojit Financial Services –

“Amidst rising covid cases, hopes of recovery through vaccine drives and a positive global market is aiding the domestic market to ride a positive wave. Biden’s decision to waive intellectual property rights on vaccines pumped in global optimism. Metal stocks continued to outshine other sectors as it kick-started its earning season on a better-than-expected note. Auto and IT were the other sectoral leaders while mid and small-cap stocks mirrored the trend.”

Rohit Singre, Senior Technical Analyst at LKP Securities –

“One more positive session with index given close at 14733 with gains of nearly one per cent and formed a bullish candle for the second consecutive day.  Now index again reaching to its strong hurdle zone of 14800-14900 zone fresh breakouts will be only if nifty sustain above 15k mark because we have witnessed profit booking from said levels in recent past, good support is formed at 14670-14600 zone managing above said level immediate structure positive.”

Manish Shah, Founder, Niftytriggers –

Nifty closed the day higher and the pattern in play in the last three days is a three inside-out pattern. This is a bullish pattern that has worked well in the last three months and usually, Nifty sees a follow-up rally at least for a couple of days. If Nifty trades and holds above 14750 expect a rally to around 15050-15000 in the next couple of days. Support is at 14650-14630. A break below this could mean a drop to 14500. Nifty is showing a tendency to bounce off the lows. Any drop at 14500 would mean a buying opportunity.

Jay Thakkar – VP and Head of Equity Research at Marwadi Shares and Finance –

“Nifty closed well above 14700 levels which is quite positive in the short term. There is a minor hurdle at 14750 levels above which it can zoom till 14725/14850 levels. On the lower side, the immediate support is pegged at 14650 levels and below that 14600 levels. Nifty Metal continues to shine whereas there was a good short covering seen in Nifty Auto and Nifty IT. Going forward in the short term Nifty Pharma, Metals, Auto and BFSI are likely to push Nifty up.”