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After The Bell: Nifty back above 14500; what should investors do on Thursday?

Nifty has to decisively hold above 14500 zones for an up move towards 14650 and 14800 zones while on the downside, support exists at 14250 and 14100 zones, says experts.

April 13, 2021 / 04:23 PM IST

Indian market staged a strong bounce back on Tuesday pushing both benchmark indices above crucial resistance levels. The S&P BSE Sensex rallied more than 600 points while the Nifty50 is back above 14,500 levels.

Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 660 points while the Nifty50 was up 194 points to close at 14,504.

Sectorally, buying was seen in auto, finance, metals, banks, and public sector stocks while profit-taking was visible in IT and healthcare stocks.

On the broader markets front – the S&P BSE Midcap index rose 1.4 percent while the S&P BSE Smallcap index closed with gains of 1.2 percent.

“Market attempted to pull back from yesterday’s sell-off but wasn’t that enthusiastic.  IT sector broke the trend due to profit booking as initial Q4 results were in line with expectations not providing enough leeway to a highly valued sector,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.

Close

“While Industrial production for February declined by 3.6% primarily due to contraction in the manufacturing and mining sectors. India’s retail inflation for March also rose to 5.52%, however, it did not harm the market sentiment as it was in line with the recent RBI policy forecast. How the lockdowns will affect the economy will determine the trend of the domestic market, in the short-term,” he said.

Here is what experts suggest investors should do on April 15:

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

The market witnessed some lackluster movement in the first half of the trading session and made an attempt to break the resistance of 14500.

The short-term technical condition appears like a sideways consolidation is in process. If the index sustains above 14500 levels, then it will gain momentum, leading to an upside projection till 14,800 levels.

The momentum indicators like RSI, MACD to show divergence, indicating a likelihood of further consolidation around the current market level.

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

The Nifty50 index formed a Bullish candle and an Inside Bar on a daily scale with a longer lower shadow indicating declines were being bought.

Now, it has to decisively hold above 14500 zones for an up move towards 14650 and 14800 zones while on the downside, support exists at 14250 and 14100 zones.

S Ranganathan, Head of Research at LKP Securities.

On an auspicious day, we saw a partial reversal of the speculative unwinding witnessed yesterday, Bulls regained the momentum in afternoon trade as the see-saw battle between the virus & vaccine tilted towards the latter with the approval of the third vaccine.

The dovish stance of the RBI gained over inflation in the minds of investors as we saw investor interest in BFSI. The broader markets though did see profit-taking in IT & Pathology names today.

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

From a risk management perspective, one can look for relief rally by placing a stop below 14300 levels on closing basis.

In such a scenario, if Nifty sustains above 14280 levels and strength continues then bounce shall initially expand into the zone of 14600 – 652 levels.

Nevertheless, for the time being, it looks prudent to remain neutral on the index till some fresh signs of weakness emerges before creating fresh short side exposure.

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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