@rex_cano
Mumbai: After a dismal start to the month, the markets today bounced back with solid gains on the back of renewed buying interest in index heavyweight Reliance Industries and financial shares. Global markets too were supportive as US tech-based Nasdaq 100 index marched towards a fresh life-time high.
The BSE benchmark index, the Sensex, opened with a positive gap of 150-odd points at 37,093. The BSE index touched a low of 36,988 and then firmed up as the day progressed. The Sensex touched a high of 37,746, before finally settling with a solid gain of 748 points at 37,688.
Among the Sensex 30 stocks, Reliance Industries soared over 7 per cent. HDFC Bank, Maruti Suzuki, Axis Bank, HDFC, ICICI Bank, Bajaj Finance, Bajaj Auto, Sun Pharma and Bajaj Finserv rallied around 2-4 per cent each. On the flip side, Tech Mahindra dropped nearly 3 per cent. IndusInd Bank, HCL Technologies, UltraTech Cement and Infosys were the other notable losers.
With today’s strong pull-back, the BSE index has turned positive on the weekly basis. As per the weekly Fibonacci chart, the BSE Sensex may now look to test the higher end of the anticipated trading range between 38,060-38,340. In case of a down move, the support at 37,345-level is crucial.
As per the daily Fibonacci charts, on Wednesday, in case of an up move the BSE Sensex may face resistance around 37,980-38,065-38,155, and in case of a down move, the BSE index is likely to seek support around 37,400-37,310-37,220.
With today’s near 2 per cent gain, the NSE Nifty has bounced back strongly above its 20-DMA (Daily Moving Average), which is at 10,974. Going ahead, the 20-DMA is likely to act as a crucial support for the index. On the upside, the index may face some resistance around 11,150-level.
Among the key momentum oscillators on the daily charts, the MACD (Moving Average Convergence Divergence) is marginally negative, while the Slow Stochastic is inconclusive. The DI (Directional Index) continues to remain positive and the 14-day RSI (Relative Strength Index) is in neutral mode.
Disclaimer: The views expressed in this article are personal and for information purpose only, it does not advocate any buy or sell /recommendation.
