Indian markets ended higher today after rebounding from a nearly three-month low. Metals and financials led the gains as investors looked past the massive surge in covid infections. The NSE Nifty 50 index rose 0.77% to 14,406 after falling to 14,151 at the start of the trade. The BSE Sensex gained 375 points to finish at 48,080.
Nifty opened lower and even broke below Tuesday’s low, bogged down by concerns over rising infections. But the fact that the initial cuts weren’t too deep, encouraged bargain hunters, who have also taken signals of falling US Treasury yields as well as strength in the US as well as Asian stock markets, ”said Anand James, chief markets strategist at Geojit Financial Services.
U.S. pharmaceutical giant Pfizer Inc said today it was in talks with the Indian government for the supply of its vaccines, adding that it would price them at a non-profit basis.
India today reported more than 300,000 fresh coronavirus infections, the largest daily increase in the world. India currently administers around 3 million doses per day.
Metals inventories rose 1.7%, with Tata Steel gaining 3.1% after its Tata Steel BSL unit reported higher quarterly net profit. The Nifty Bank index rose 1.8%, with heavyweights HDFC Bank Ltd gaining 2.2%.
Analysts say Nifty breaking through 14,500 levels will be crucial for any further upside, while a break out of the current lows of 14,151 could trigger further decline.
Here are the main levels to watch for in the next sessions:
Deepak Jasani, Head of Retail Research, HDFC Securities
Despite an increase in the number of Corona cases, traders took to bottom fishing on the weekly F&O expiration day, reversing a two-day streak of loss. Volumes on the NSE were in line with recent averages. Nifty after hitting a new recent low of 14151 made a bullish piercing pattern today. However, crossing 14526 will be crucial for any further ascent. The expected decline ratio is positive, suggesting that investors are comfortable holding and buying small and mid caps ahead of earnings season. “
Shrikant Chouhan, Executive Vice President, Technical Equity Research at Kotak Securities
“The Nifty / Sensex formed a bullish piercing pattern by closing above the previous day’s median, which was at 14367/47958 levels which can be found at the end of a downtrend. Based on this, our strategy should be to create long positions with levels between 14350/47950 and 14300/47700. On the upper side we would see the levels of 14530/48500 and 14580/48650. A close above the levels of 14580/48650 would validate the formation of a bullish reversal and in this case the Nifty / Sensex may even reach the 14850/50000 levels where it has the biggest hurdle. On the other side 14250/47690 and 14150/47200 would be major supports. Keep a final stop loss at 14150/47200 to create everything Today the market spread was healthy and this was mainly due to renewed interest in buyers in financials. Bank-Nifty closed high point of the day. The focus should be on financial and meta values. lliques. “
Rohit Singre, Senior Technical Analyst at LKP Securities.
Once again, the index showed a good pullback from its strong support and managed to end a day on a positive note in the 14400 area with gains of nearly one percent forming a bullish candle on the daily chart. On the higher side, the index has a tough hurdle at 14450. -14500 area if it manages to hold above 14500 then we can see the extension of the current pullback towards the 14700 area- 14900 in the short term, but failed to maintain above the 14500 zone, then again the reserve of profits can be seen from the high end to the immediate support zone of Zone 14350-14250 “
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
“Markets failed to break through today’s low of 14130 and rose to close above 14400. Unless we break today’s low and hold on. Below that for a few hours, the markets will not enter a bearish phase. If he succeeds in breaking the lows, we should be able to go down to 13800. The upside is capped at 14550. ” (With Reuters entries)