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After The Bell: Bulls take control, what should investors do on Tuesday?

The Nifty has to hold above 15,750 to witness an up move towards 15,900 and 16,000, while on the downside, support exists at 15,600 and 15,500.

June 14, 2021 / 06:13 PM IST

The Indian market bounced back sharply in the second half of the trading session on June 11, as the bulls helped the Sensex recover more than 600 points from the day's low and also pushed the Nifty above 15,800.

The Sensex ended 76 points higher at 52,551, while the Nifty50 closed with gains of 12 points at 15,811.

"Though the domestic market opened on a negative note due to lack of positive cues, it recovered in the afternoon, led by heavyweights following positive global markets. WPI inflation for May rose to 12.94 percent, reflecting a higher price of fuel and manufactured products along with a lower base," Vinod Nair, Head of Research at Geojit Financial Services said.

The Fed policy meeting on June 15-16 would dominate investor behaviour in the coming days. The Fed is expected to keep rates unchanged, the focus, however, will be on its comment on inflation, he said.

Sectorally, buying was seen in energy, IT, consumer durable and oil & gas stocks, while pressure was seen in power, realty, utilities, and infra stocks.

Close

The broader markets underperformed the benchmarks. The BSE midcap index was down 0.6 percent and the smallcap 0.16 percent.

Here’s what experts suggest investors should do on June 15:

Expert: Chandan Taparia, Vice President | Analyst-Derivatives, Motilal Oswal Financial Services

IndexPricesChangeChange%
Sensex52,586.840.00 +0.00%
Nifty 5015,763.050.00 +0.00%
Nifty Bank34,584.350.00 +0.00%
Nifty 50 15,763.05 0.00 (0.00%)
Mon, Aug 02, 2021
Biggest GainerPricesChangeChange%
No Biggest Gainer details available.
Biggest LoserPricesChangeChange%
No Biggest Loser details available.
Best SectorPricesChangeChange%
Nifty Pharma14425.30504.95 +3.63%
Worst SectorPricesChangeChange%
Nifty Metal5770.35-40.40 -0.70%

Technically, the index formed a small-bodied bullish candle on the daily scale with a long lower shadow, indicating that declines were being bought in the market.

Now, the index has to hold above 15,750 to witness an up move towards 15,900 and 16,000, while on the downside, support exists at 15,600 and 15,500.

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

The Nifty has respected the 15,700 level on a closing basis. Despite the crack in the first hours of trade, it managed to claw back losses and closed well above the day’s low.

The 15,900-16,000 level will continue to be the next target and as long as the index holds 15,700, traders have no reason to be concerned. A buy-on dip is a prudent strategy to adopt at these levels of the market.

Ajit Mishra, VP-Research, Religare Broking Ltd

Markets are seeing buying interest on every dip and it shows that bulls are in control. Apart from the domestic factors—inflation and monsoon updates—the upcoming US Fed meet will also be in focus.

We reiterate our bullish yet cautious view of the market and suggest maintaining a stock-specific trading approach. We expect the Nifty to test the next milestone of "16,000" soon.

Ashis Biswas, Head, Technical Research, CapitalVia Global Research Limited.

The market witnessed a swift recovery after the initial fall. The index managed to hold on to the support level of 15,650.

If the index trades above 15,650 on June 15 as well, it will be positive from a short-term perspective, which can lead to an upside projection of 15,900.

Momentum indicators like RSI and MACD are showing signs of recovery after the sharp fall in the Nifty. The market didn’t see any divergence signal, alerting a potential deep correction.

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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