Sensex reclaims 46,000, Nifty crosses 13,400; have bulls made a swift comeback on Dalal Street?

After a brief half yesterday, domestic benchmark indices have again resumed their upwards march. S&P BSE Sensex gained 452 points to close at 46,006 while the 50-stock NSE Nifty ended the day’s trading session at 13,466. Today’s up move was helped by IT stocks with HCL Tech gaining 5.3%, followed by Tech Mahindra, and Infosys. Broader markets were following the benchmarks as they too closed with gains. India Vix or the volatility gauge, slipped today after having zoomed over 20% yesterday, as it closed at 21.99 levels today.

Vinod Nair, Head of Research at Geojit Financial services –

“Market took an unexpected positive momentum in the afternoon, during a see-saw trading day, following the positive opening of the European market, which recovered from yesterday’s sell-off. The sectorial rally was led by IT and Pharma stocks with other sectors also supporting the up move. Volatility is expected to stay high in the near-term due to strict lockdown impacting economic recovery. However, the market is expected to remain bullish in the medium to long term, backed by overall progress in economic activity in 2021.”

Rohit Singre, Senior Technical Analyst at LKP Securities –

“After a strong fall in yesterday session, the index took a breather and managed to close the day on a positive note at 13466 with gains of 1% and formed a hammer sort of candle pattern. Good recovery in today session has created a fresh base in index near 13200 zone until trading above the said levels we may see today’s  pullback to extend further towards its immediate resistance zone of 13600 in coming sessions.”

Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments –

“For the time being, the markets are directionless. Yesterday’s fall has made traders nervous and since the volatility is high, the stops will be large too. It is therefore advised to wait and watch for a few days till a clear direction is confirmed. 13100-13150 is medium-term support for the Nifty and if that were to break, we could slide down to 12800.”

Ajit Mishra, VP – Research, Religare Broking Ltd 

“Markets witnessed a rebound and ended with gains of ~1%, after the sharp decline in the previous session. It opened with an uptick amid mixed global cues and hovered in a range in the first half. We expect volatility to remain high in the following sessions too. Traders should proactively manage their positions and avoid unnecessary overnight risk. Defensive pack viz. IT, pharma and FMCG is looking comparatively strong and should be preferred for buying trades in case the rebound extends further. On the flip side, banking and metal may trade subdued so plan your positions accordingly.

Sumeet Bagadia, Executive Director, Choice Broking-

“On Four Hourly Chart, Nifty has formed a bullish Engulfing Candlestick Pattern which suggests upside movement in the benchmark index. Moreover, Nifty has taken support from 21 DMA and closing above it and sustaining the same would suggest a further upside movement. Daily Momentum Indicator RSI has also bounced from 55 level and closed at 60.90 levels which points to a positive breadth in the benchmark index. At current level, Nifty has support at 13150 levels while resistance comes at 13550 levels.”