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After The Bell: 15k breakout crucial for bulls, what should investors do on Tuesday?

The Nifty has to hold above 14,850 for an up move towards 15,050 and 15,150, while on the downside, support exists at 14,800 and 14,700, say experts.

May 10, 2021 / 05:14 PM IST

The Indian market closed in the green for the fourth consecutive session on May 10 at a two-month high. The bulls pushed the Nifty50 above 14,900 and a breakout above 15,000 is in sight. The index ended the day at 14,942, 0.8 percent high, while the Sensex closed 0.6 percent higher at 49,502.

Sectorally, buying was seen in metals, public sector, capital goods, healthcare & power stocks, while profit-taking was seen in the IT space.

The broader market closed mixed as the S&P BSE smallcap index closed 0.07 percent lower, while the midcap index was up nearly 1 percent.

"Domestic bourses continued to ride on its optimistic wave mirroring strong across-the-board buying with metals, auto and pharma stocks leading the rally. US job growth significantly slipped its April forecast, signalling sluggish momentum in the labour market while a cyber attack hiked the US oil prices,” Vinod Nair, Head of Research at Geojit Financial Services said.

“Despite a decline in April auto sales numbers due to the impact of COVID lockdowns, the auto sector managed to stay afloat owing to its long-term positive outlook,” he added.

Close

Here is what experts say investors should do on May 11:

Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services Limited

The Nifty formed a small-bodied candle on the daily scale as it closed near its opening levels and continued to make higher lows from the fifth session.

IndexPricesChangeChange%
Sensex52,474.76174.29 +0.33%
Nifty 5015,799.3561.60 +0.39%
Nifty Bank35,047.40-83.80 -0.24%
Nifty 50 15,799.35 61.60 (0.39%)
Fri, Jun 11, 2021
Biggest GainerPricesChangeChange%
Tata Steel1,158.3543.90 +3.94%
Biggest LoserPricesChangeChange%
Larsen1,503.45-16.25 -1.07%
Best SectorPricesChangeChange%
Nifty Metal5406.80141.60 +2.69%
Worst SectorPricesChangeChange%
Nifty PSU Bank2474.30-13.35 -0.54%

Now, the index has to hold above 14,850 zones to witness an up move towards 15,050 and 15,150 zones while on the downside support exists at 14,800 and 14,700 zones.

Sumeet Bagadia, Executive Director at Choice Broking.

Technically, the Nifty faced resistance from the falling trendline as well as the upper band of Bollinger, which suggests crossing above the same can lead to an upside movement.

Moreover, the index has given closing above the 21-day moving average, which points to strength in the index. A momentum indicator RSI and MACD has indicated positive crossover, which supports the bullish trend for the near term.

At present, the Nifty is holding support at 14,760, while an upside resistance seems at 15,000.

Shrikant Chouhan, Executive Vice President (Equity Technical Research), Kotak Securities

In the near term, the Nifty/Sensex is heading for the levels of 15,050/49,800 on the minimum side and 15,150/50,100 on the maximum side and the final strategy should be to buy minor dips.

Support exists at 14,800/49,000 and 14,700/48,700. On May 7, the Nifty/Sensex gave a breakout and on May 10 the Bank Nifty closed above the psychological barrier of 33,000, which may lift the index to 34,000 with a major hurdle at 33,650.

Rohit Singre, Senior Technical Analyst, LKP Securities

The Nifty formed a small bullish candle on the daily chart. There is still a strong hurdle still at 15,050 and if the index managed to sustain above it for a day or give a close above it, more upside is possible.

A close below 15,050 or the index that stays below the said level could trigger profit booking. Support is shifted to 14,900-14,850 zone holding above said levels momentum good.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Kshitij Anand is the Editor Markets at Moneycontrol.

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