Indian markets recouped some of the losses of the previous trading session on March 1 on positive global cues. The S&P BSE Sensex and Nifty50 rallied more than 1.5 percent each.
The Sensex rose 749 points to 49,849, while the Nifty closed with gains of 232 points at 14,761.
Sectorally, the action was seen in infra, metals, utilities, auto and metal stocks, while some profit-taking was seen in the telecom space.
Positive global cues, steady micro-data as well as strong auto sales data helped the sentiment. The next crucial resistance is placed at around 14,800.
“Domestic markets kick-started the month on a strong footing with increased optimism led by GDP reaching positive numbers, improving auto numbers and steady PMI manufacturing data. The auto sector was in focus today as the sales numbers for February were in favour of manufacturers,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.
“Global markets were on its upward rally owing to the much-anticipated US stimulus package being approved and reports regarding the progress in the vaccines."
Here is what experts say investors should do on March 2:
Ashis Biswas, Head of Research at CapitalVia Global Research Limited
The market witnessed some lacklustre movement. The Nifty 50 is still trading below the resistance level of 14,850. A breakout above 14,850 is critical for the market to regain momentum.
It will be prudent to wait for a decisive breakout above 14,850 and technical factors to improve before going long in the market.
We retain our cautious stance and advise traders to refrain from building a new buying position until further improvement.
Rohit Singre, Senior Technical Analyst at LKP Securities
The Nifty closed the day at 14,782 with gains of nearly two percent and formed a bullish harami candle on the daily chart, which represents a change in immediate trend.
The index has formed immediate support near 14,640-14,580 zone and good resistance is coming near 14,810 and any break above these levels can push the index towards 15,000 again.
Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas
The Nifty had a swift bounce on March 1 after a sharp fall on February 26. The index had reached the junction of 40 DEMA and the daily lower Bollinger Band on February 26.
These parameters together act as good support as was seen on March 1. The index has seen a lower Bollinger reversal and is expected to head towards the middle line in the next few sessions.
The overall structure shows that the index is likely to stay in a consolidation phase for the short term where the range would be 15,000-14,400. The daily Bollinger Bands are in a contraction phase, which is in line with the expected consolidation.
Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services Limited
The Nifty formed a small Bullish candle but an inside Bar or a Harami Cross on a daily scale, pointing to an absence of direction.
It has to continue to hold above 14,700 to extend its move towards 14,900 then 15,000, while on the downside, immediate support exists at 14,600 and then 14,500.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.