Market Outlook: Bias to remain bullish as long as Nifty sustains above 10,075

Mumbai: The markets have started the week on a positive note on the back of follow-up buying in select index heavyweights. The BSE benchmark index, the Sensex, opened with a positive gap of 160-odd points at 34,892. The Sensex touched a high at 35,213, and thereafter pared gains to settle at 34,911 – still up 180 points.

Among the Sensex 30 stocks, Bajaj Auto zoomed nearly 7 per cent and was the top index gainer. Bajaj Finance, Bajaj Finserv, PowerGrid, Kotak Bank, Axis Bank, NTPC, Asian Paints, Tech Mahindra and SBI gained 2-5 per cent each. On the flip side, HDFC, ONGC and TCS declined around a per cent each.

In today’s trade, the BSE index retraced twice after crossing the 35,200-odd level. Going ahead, this level could act as a minor hurdle while the index consolidates and looks to build fresh upside momentum. The bias is likely to remain bullish as long as the BSE index sustains above 34,200-level. On the upside, the Sensex may rally towards 35,800-odd level.

Also Read: Weekly Outlook: Nifty now eyes 10,950; bias to remain bullish as long as 9,930 holds

As per the daily Fibonacci charts, on Monday, in case of an up move the BSE Sensex may face resistance around 35,100-35,150-35,210, and in case of a down move, the BSE index is likely to seek support around 34,730-34,670-34,610.

The NSE Nifty has ended above the 100-DMA (Daily Moving Average) for the second straight trading session on Monday. The near term bias is likely to remain bullish as long as the NSE index sustains above the 100-DMA, which is currently around 10,075-odd level. The 20-DMA is seen catching up around 9,900-odd level, as and when the 20-DMA crosses the 100-DMA, it would indicate additional strength to the market.

As per the daily charts, the NSE index seems headed towards the higher end of the Bollinger Band, which is 10,500, break and close above this can trigger a sharp up move towards 10,900-odd level, which is the 200-DMA. Currently, the Nifty is trading firmly above the 20-DMA, 50-DMA and 100-DMA.

Among the key momentum oscillators on the daily charts, the DI (Directional Index) and the Slow Stochastic are clearly in favour of the bulls. The MACD (Moving Average Convergence Divergence) is in neutral mode, while the 14-day RSI (Relative Strength Index) is nearing overbought levels.

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

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