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After The Bell: Nifty back above 14,600, what should investors do on Wednesday?

The index has to continue to hold above 146,00 to witness an up move towards 14,800-14,880, while on the downside, support exists at 14,500 and 14,400, say experts.

April 27, 2021 / 05:04 PM IST

The Indian market closed in green with gains of over 1 percent for the second day in a row on April 27, with the S&P BSE Sensex gaining 557 points to close at 48,944, while the Nifty50 rose 168 points to 14,653.

Sectorally, buying was seen in metals, capital goods, industrials and energy space. On the broader markets front, the S&P BSE midcap index rose 1.04 percent, while the smallcap index closed with gains of 1.49 percent.

The market moved higher in anticipation of healthy earnings from India Inc and a dip in COVID-19 cases also boosted the sentiment on D-Street.

"Expectations from earnings outcome by heavyweights. Sectors such as banking, metals and consumer durable witnessed healthy buying interest from participants. In addition, the progress of the vaccination drive and a dip in the COVID cases further boosted sentiments," Ajit Mishra, VP - Research, Religare Broking Ltd, said.

"We’re currently dancing to the global tunes and prospects of upbeat earnings have further strengthened the recovery. We feel the Nifty can test 14,800 next if it manages to hold above the 14,600 zone. Participants should align their positions accordingly and prefer sectors that are showing consistent buying interest," he said.

Close

Here is what experts suggest investors should do on April 28:

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

Technically, the Nifty formed a bullish candle on a daily scale and has been forming higher highs-higher lows from the last three sessions.

Now, the index has to continue to hold above 14,600 to witness an up move towards 14,800-14,880, while on the downside, support exists at 14,500 and 14,400.

Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas

The index has surpassed the key daily moving averages on a closing basis. Daily momentum indicators,too, have turned in favour of the bulls. This suggests that the bulls are having the upper hand on the index.

Going ahead, 14,700-14,750 will be the key area to watch out for. Once that gets taken out on a closing basis, the Wedge pattern will be considered to have broken out on the upside and the index will be set for a significant upside.

In that case, 15,000 will be the initial target on the upside with the potential to stretch much higher.

Rohit Singre, Senior Technical Analyst, LKP Securities

A strong positive move was witnessed on April 27 after a small gap-up opening and the index closed the day at 14,655 with gains of more than a percent. The Nifty formed a bullish candle on the daily chart.

The index shifted its base to 14580-14500 zone and if it manages to hold the said levels, we may see some more extension in the ongoing move towards 14,750.

A close above 14,750 could lead to a fresh breakout, which can push the index towards the 15,000-mark on a quick basis.

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

The index has closed within its resistance zone of 14,500-14,700. We are at a crucial juncture because if we keep above that patch, we will swiftly move towards 15,000-15,100. If the market decides to turn at this juncture, we will go down to test the previous lows again.

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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