Bulls push Sensex, Nifty higher for second day straight; here’s what experts make of today’s trade

The overall market momentum was positive with broader markets participating in the up-move after days of underperformance.
(Image: REUTERS)

Bulls propelled domestic markets higher on Tuesday, helped by positive global cues. S&P BSE Sensex ended the day 403 points or 0.73% higher at 55,958 points while the NSE Nifty zoomed 0.78% to close at 16,624. Bank Nifty marched upwards, gaining 1.67% to end at 35,712 points. Bajaj Finserv was the top Sensex gainer, jumping 7.9%, followed by Tata Steel, Tech Mahindra, and Bajaj Finance. On the other side, Nestle India was down 1.34%, as the only Sensex stock to fall over 1% on Tuesday, followed by Infosys, HDFC, and HCL Technologies. The overall market momentum was positive with broader markets participating in the up-move after days of underperformance. India VIX closed with losses. 

Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities-

“Key benchmark indices maintained positive momentum for the second straight session on the back of a strong undercurrent in financials, metals and oil & gas stocks. The texture of the pullback rally indicates the index is likely to consolidate between 16500 to 16720 levels. In addition, on the intraday chart, the index has formed a higher bottom formation which suggests further uptrend from the current levels. As long as the index is trading above the 10 day SMA or 16500 level, the uptrend wave is likely to continue up to 16700-16750 levels. On the flip side, the index would be vulnerable below 16500.”

Deepak Jasani, Head of Retail Research, HDFC Securities –

“Nifty bounced up well over the past two days and on Aug 24, it filled the downgap formed on Friday on closing basis. Advance decline ratio also improved dramatically to the highest since Aug 12. Nifty is just 76 points away from the all time high formed on Aug 18. More than the Nifty, focus will remain for some time on the broader markets, as to how much does the broader market recover when the Nifty is near all time highs.”

Vinod Nair, Head of Research at Geojit Financial Services –

“Strong rebound in broader markets along with favourable global cues bolstered optimism in Dalal Street, led by metal, banking and realty stocks. Metal stocks led the rally as value buying was witnessed in the sector after deep sell-off during the past four trading sessions due to weak iron ore futures across the globe. The USFDA granted full approval to the covid-19 vaccine by Pfizer and BioNTech which pumped in hopes of faster inoculations.”

S Ranganathan, Head of Research at LKP securities –

“While the Bajaj Twins helped power the Sensex back to 56K in Afternoon Trade, what was more encouraging was to see savvy investors begin to accumulate stocks sold at higher levels in the broader market which speaks about the recovery in the earnings cycle during Q1 despite the adverse impact of the second wave. Buoyancy in tax collections brought back traders into Metal names even as the Nifty Bank lent good support.”

Arijit Malakar, Head of Research Ashika stock Broking –

Market has given strong closing on Tuesday on the back of positive global cues and optimism over economic growth amid the easing of COVID-19 related restrictions by the states. The unlocking in the country has manifested itself in improving performance across various high frequency industrial and service sector indicators, mobility and toll collections in July 2021. Business activity in India stayed buoyant for the second week in a row with Nomura India Business Resumption Index rising to 100.8 for the week ended August 22. Global markets also remained strong after US FDA gave the final approval of the Pfizer Inc. /BioNTech SE COVID-19 vaccine. Baring IT and FMCG index all the major indices closed in positive.”

Sachin Gupta, AVP, Research, Choice Broking –

“Overall, the index is in a bullish trend and trading upward continuously with higher high & higher low formations from the last couple of days. On four hourly charts, the index has taken immediate support at Middle Bollinger Band formation, which indicates further positive moves. However, still, there is a hurdle at around 16700 levels which may act as an immediate resistance zone. Above that, can expect 16800/16850 levels in the nifty index while on the downside, the support comes at 16400 levels.”

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