Sensex Nifty end near all-time highs; chartists see further upside but suggest caution

Domestic equity markets continued to march higher and set fresh all-time highs on Monday as they entered the first full week of the new year. S&P BSE Sensex closed at 48,176 after gaining 307 points while the 50-stock NSE Nifty zoomed to close above 14,100 for the first time ever. Investors bought into the weakness shows by domestic markets during the early hours of trade. Broader markets once again outperformed the benchmark indices. Among sectoral indices, only Nifty Bank and Nifty private bank ended in the red. Volatility gained marginally to breach 20 levels. 

Vinod Nair, Head of Research at Geojit Financial services –

“Every dip is being considered by the traders as an opportunity to buy. Today morning’s volatility was brought, fueled by the early rollout of the vaccine in India and positive opening of the European market. The leader was IT stocks boosted by the hope of a strong quarterly result, which will start soon. The global market has kicked off the year on a positive note as investors across the globe are optimistic about economic recovery on the report over vaccine approval &  fiscal support.”

S Ranganathan, Head of Research at LKP Securities –

“Emboldened by the likely roll-out of the Vaccine this month, Bulls went berserk bolstered by IT & Metal stocks with able support from Pharma stocks. PMI data and renewed buying in select Financials provided buoyancy across the broader markets.”

Rohit Singre, Senior Technical Analyst at LKP Securities –

“Index opened day with gap up and after taking some din in the first half index managed to close a day near its high at 14128 with a gain of nearly one per cent and formed a hanging man candle pattern on the daily chart. Going forward strong base is created near 14000 mark any dip near 14000 mark will be again buying opportunity and on the higher side immediate  & strong hurdle is placed at 14200 zone traders can use 14200 zone as profit booking zone.”

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments –

“14100 posed a resistance and the markets turned red in a few minutes but the bullish undercurrent is so strong that the Nifty bounced smartly and has closed above 14150. The next level we can aim for would be 14200-14250. But I would still advise caution on the long side with strict stops.”

Manish Shah founder Niftytriggers –

“Nifty is in a sharp up move and the tendency of the market to stay at elevated levels without any corrective declines is a sign of buyers in control. World Equity markets are on a roll. Nifty moves above R1 PIVOT of the weekly at 14200 is the R2 Pivot of the weekly and above that the resistance is 14350-14360. Support for Nifty is at 14110 a break below this and there could be a minor decline towards 13900-13850. Expect the Nifty to continue to higher towards 14350-14360 over next couple of days.”