Market Outlook: Bias to remain bullish for Nifty above 11,150

@rex_cano

Mumbai: The markets continued its astounding bull run on the back of positive news with regards to Covid-19 vaccine. Markets across the globe rallied smartly after a news study stated that the coronavirus vaccine developed by the University of Oxford and drug major AstraZeneca showed positive results in early human testing. This is the second vaccine which has shown positive results in human trials, thus hopes of a vaccine in the near future have risen.

The BSE benchmark index, the Sensex, opened with a huge positive gap of over 400 points and traded with a positive bias throughout the day. The Sensex touched a high of 37,991, before settling with a gain of 511 points at 37,930.

Among the Sensex 30 stocks, PowerGrid Corporation zoomed over 6 per cent. Maruti, ICICI Bank and HDFC surged around 4.5 per cent each. Kotak Bank, Axis Bank, Reliance Industries, ONGC, Larsen & Toubro, SBI and Tata Steel gained 2-3 per cent each. On the other hand, Bajaj Finance slipped over 4 per cent and Bajaj Finserv too shed 3.5 per cent. Asian Paints, Bharti Airtel, Sun Pharma and IndusInd Bank were the other notable losers. 

The BSE Sensex has now given a clear buy signal on the weekly Fibonacci charts, as per the charts the bias for the remainder of the week is likely to remain bullish as long as the BSE index sustains above 37,500. On the upside, sustained trade above 38,000-level can trigger a move towards 38,750-odd level.

Also Read: Market Outlook: The 11,050-level is the pivot point for Nifty on Tuesday

As per the daily Fibonacci charts, on Wednesday, in case of an up move the BSE Sensex may face resistance around 38,025-38,055-38,085, and in case of a down move, the BSE index is likely to seek support around 37,835-37,805-37,775. A break in either direction can trigger a sharper movement in that particular direction.

The NSE Nifty ended with a gain of 1.3 per cent at 11,162 and is now trading along with its higher-end of the Bollinger Band. As per the daily charts, bias for the index is likely to remain bullish as long as the NSE index holds above 11,150-level in trades on Wednesday. Failure to sustain above 11,150 can trigger a round of profit-taking. Having said that, the overall trend is likely to remain extremely bullish as long as the Nifty sustains above 10,870. On the upside, the Nifty will now target its higher-end of the Bollinger Band on the weekly charts, which is 11,320.

Among the key momentum oscillators on the daily charts, the Slow Stochastic and the DI (Directional Index) continue to remain positive, while the MACD (Moving Average Convergence Divergence) remains inconclusive. The 14-day RSI (Relative Strength Index), however, has entered the overbought zone.

Disclaimer: The views expressed in this article are personal and for information purpose only, it does not advocate any buy or sell /recommendation.