Reliance Industries, HDFC Bank push Sensex 1223 pts higher; Nifty ends near 16350, support at 16200

Domestic indices carried forward yesterday’s gains following a claw back in European markets and US futures as smart investors saw value in current market valuations, an analyst said.

BSE Sensex and Nifty 50 gained for the second straight day, defying the Russia-Ukraine crisis on Wednesday. Indices ended over 2 per cent higher on a day before weekly F&O expiry. BSE Sensex ended 1223 points or 2.3 per cent higher at 54,647.33, while NSE Nifty 50 index ended 332 points or 2.07 per cent up at 16,345. Index heavyweights such as Reliance Industries Ltd (RIL), HDFC Bank, Infosys, Bajaj Finance, State Bank of India (SBI), among others, contributed the most to the Sensex ‘1223-point rally. Broader markets, once again, outperformed the frontline indices. S&P BSE MidCap index gained 2.4 per cent or 531 points to end at 22962. On the other hand, S&P BSE Smallcap index gained 2.2 per cent or 562 points to settle at 26,583.64. Nifty’s volatility index, which indicates the degree of volatility traders expect over the next 30 days in the Nifty 50 index, ended nearly 4 per cent down at 27.47 levels. Bank Nifty surged 2 per cent to finish trade at 33815.

S Ranganathan, Head of Research, LKP Securities

D-Street bulls finally held the upper hand today on reports suggesting that the Ukrainian President is no longer pressing for NATO membership. With Covid behind, short-covering coupled with the exit poll results buoyed the bulls as benchmark indices rose almost 3% in late afternoon trade with major sectoral indices ending in the green. Domestic investors who have reposed faith in the GOI policies amidst the turmoil and volatility would be keenly watching the impact of rising oil & commodity prices on inflation and corporate earnings.

Vinod Nair, Head of Research, Geojit Financial Services

Domestic indices carried forward yesterday’s gains following a clawback in European markets and US futures as smart investors saw value in current market valuations. Dip buying is noticed in heavyweights, defensives like IT & Pharma, and value buying in Pvt banks. Oil prices continued to rise after the US banned Russian oil imports. The domestic market is also reacting positively to exit polls and in anticipation of in-line state election results. In the near term, the domestic market will trade as per the positive or negative surprise in the state election results and global trend.

Rupak De, Senior Technical Analyst, LKP Securities

The proximity to the lower band of the falling channel and the formation of a bullish Engulfing pattern has induced the rally in the benchmark Nifty. However, the Nifty has found resistance at the previous swing low. The momentum is positive with a bullish crossover in the daily RSI. Going ahead, a decisive move above 16400 may unlock the next level for Nifty. On the lower end, support is visible at 16200/16000.

Mohit Nigam, Head – PMS, Hem Securities

On the technical front, immediate support and resistance in Nifty 50 are 16100 and 16500 respectively. Bank Nifty immediate support and resistance are 33200 and 34500 respectively.

Sachin Gupta, AVP – Research, Choice Broking

On a daily chart, the index has confirmed the Bullish Engulfing breakout, which suggests further bounce for the near term. Moreover, the index also took support at Lower Bollinger Band and moved above it. On an hourly chart, the index has formed a rounding bottom and witnessed a positive crossover in RSI & Stochastic. At present, the index has support at 16200/16000 levels while resistance comes at 16770 levels. On the other hand, Bank nifty has support at 33200 levels while resistance at 34500 levels.

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