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After The Bell: Nifty above 15,100; what should investors do on Friday?

It is prudent for investors to wait for a decisive breakout above 15,250 and technical factors to improve before going long in the market, suggest experts.

March 10, 2021 / 04:56 PM IST

Indian market closed in the green for the third consecutive day in a row on March 10 following a positive trend in global markets. The S&P BSE Sensex rose by over 250 points while the Nifty50 closed above 15,100 levels.

Let’s look at the final tally on the Street – the S&P BSE Sensex rose 254 points to 51,279 while Nifty50 closed with gains of 76 points at 15,174.

Sectorally, up move was seen in metals, IT, healthcare, consumer durables, capital goods while profit taking was seen in oil & gas, utilities, energy and power stocks.

On the broader markets front, the S&P BSE Mid-cap index was up 0.7 percent while the S&P BSE Small-cap index was up nearly 1 percent.

Market will remain shut on Thursday on account of a public holiday.

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"Domestic markets mirrored positive cues from its global peers, tracking gains from the US market as bond yields pulled back easing concerns about rising inflation,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.

“As per the data published by the Federation of Automobile Dealers Association, the retail sales for February grew 10.59% YoY after reporting a 4.4% decline in January keeping the outlook for the sector intact,” he said.

Nair further added that two-wheeler, three-wheeler and commercial vehicles continued to see sluggish demand. Buying interest was broad-based led by IT, pharma and metal stocks.

Here is what experts suggest investors should do on March 12:

Ashis Biswas, Head of Technical Research at CapitalVia Global Research

The market witnessed yet another day of lackluster movement. Nifty50 is still trading below the resistance level of 15,250.

The expected level should range between 14,900 and 15,250.

While it is subject to further price action evolution, it is prudent to wait for a decisive breakout above 15,250 and technical factors to improve before going long in the market.

The traders are advised to refrain from building a new buying position until further improvement.

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

Nifty formed a Bearish Hammer-like candle on the daily scale with a long lower shadow which indicates declines were being bought.

Now, it has to decisively hold above 15,150 zones to witness an up move towards 15,300 and 15,431 zones while on the downside, immediate support exists at 15,100 and then at 15,000.

S Hariharan, Head - Sales Trading, Emkay Global Financial Services

There has been a trend of weakening institutional participation in markets, coinciding with a lack of trend in overall indices. Volatility in global bond and commodities markets has induced uncertainty factors that do not appear to be fully reflecting in the equities.

Going forward, the IT sector can be expected to be an outperformer in a defensively-positioned market environment, and an extension of recent underperformance by midcaps appears likely. Going into year-end, seasonal tightness of liquidity in money markets would manifest itself in a weaker rupee and some pressure on Financials names.

Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in

Unless Nifty closes above 15273 levels a trending move in an upward direction should not be expected and in case if Nifty slips below 15100 in the next session then intraday weakness shall be expected which can extend towards 15k levels.

Hence, on such an upward breakout above 15273 levels, the initial target can be the test of lifetime high present around 15431 levels.

Similarly, on the downside, 14900 seems to be emerging as the critical short-term support below which index shall trigger a short-term downswing with initial targets towards 14600 levels.

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

The market closed at the level of 15170 on Wednesday, however, traders were not keen to carry positions due to the bank holiday on Thursday. It can also happen on Fridays, as it can be a weekend getaway.

Next Monday we can see a strong trend. Technically, the market closed above the level of 15150/51250, which could maintain the market's bullish continuation. We may see at least 15280 or 15350 levels in the near term.

However, if the Nifty/Sensex fails to break the 15280 levels, it may send the market to consolidation between 15000 and 15280.

If the index goes below 15000/50750, the bullish trend will break. Bond yields and the dollar index would once again determine the market trend in the coming days.

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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