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Mumbai: The markets extended its winning run on the back of steady buying support in select financial shares, even as global cues remained subdued. Elsewhere in Asia, the markets were mildly positive in the backdrop of rising hopes for a US stimulus package after President Donald Trump was discharged from the hospital after receiving the initial Covid-19 treatment.
The BSE benchmark index, the Sensex, opened with a huge positive gap of 360 points at 39,336, and thereafter held on to its gains throughout the trading session. A fresh round of buying towards the end of the trading session saw the BSE index rally to a high of 39,624. The Sensex finally ended with a strong gain of 601 points at 39,575.
Among the Sensex 30 stocks, HDFC zoomed over 8 per cent. IndusInd Bank, Mahindra & Mahindra, Asian Paints, Bajaj Finance, HDFC Bank, UltraTech Cement, ICICI Bank, Bajaj Finserv, Kotak Mahindra Bank, SBI, Axis Bank and Maruti Suzuki advanced 1-3 per cent each. On the other hand, Tata Steel and Nestle India slipped a per cent each.
Also Read: Market Outlook: Nifty may drop back to 11,300 if the index fails to sustain above 11,500
Today, a day after giving a ‘Buy’ signal on the monthly Fibonacci chart, the Sensex achieved its monthly R2 target placed at 39,500-level. The BSE index now seems on course towards the monthly R3 at 39,840 followed by the quarterly levels at 40,000-40,600-41,200. The near term support for the BSE index has now moved higher to 39,160-38,700.
The Sensex has also given a fresh ‘Buy’ signal on the weekly Fibonacci chart. As per the weekly chart, the bias for the BSE index is likely to remain bullish as long as the BSE index sustains above 39,430. In case of a decline, the Sensex is likely to find strong support around 39,150-38,960.
As per the daily Fibonacci chart, on Wednesday, in case of an up move the BSE index may face resistance around 39,740-39,790-39,840. On the other hand, in case of a decline the Sensex is likely to seek support around 39,410-39,360-39,310.
The NSE Nifty surged to a high of 11,680 and finally ended with a gain of 1.4 per cent at 11,662. The NSE index has managed to break above its Super Trend Line resistance and now seems on course to test the higher-end of the Bollinger Band on the daily chart, which indicates a target of around 11,800.
Moreover, the short-term trend which was threatening to turn negative a week ago, has somehow managed to remain positive thanks to the long strides by the NSE Nifty in the last few trading sessions. While the bias seems to be in favour of the bulls, a sharp mean reversal from higher levels cannot be ruled out. Going ahead, the 11,300-level is likely to be a key pivot point for the Nifty.
Among the key momentum oscillators on the daily chart the Slow Stochastic and the DI (Directional Index) continue to remain in favour of the bulls. The MACD (Moving Average Convergence Divergence) too has turned mildly positive. The 14-day RSI (Relative Strength Index), however, remains in the neutral zone.
Disclaimer: The views expressed in this article are personal and for information purpose only, it does not advocate any buy or sell /recommendation.
