Indian market closed in the green for the third consecutive day in a row on Wednesday tracking positive global cues, optimism over COVID vaccine, and strong Q4 results from India Inc.
The S&P BSE Sensex rallied by nearly 800 points while the Nifty50 closed above 50-SMA placed at 14,798 which is a positive sign for the bulls.
Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 789 points to 49,733 while the Nifty50 rose 211 points to close at 14,864.
Sectorally, buying was seen in banks, finance, auto, and telecom stocks while mild profit-booking was visible in realty, metals, and healthcare space.
The S&P BSE Midcap index rose nearly 1 percent while the S&P BSE Smallcap index closed with gains of 0.7 percent.
"Superior Q4 results and vaccine optimism buoyed domestic markets to trade on a positive footing for the third consecutive day ahead of the Fed interest rate decision,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.
“Strong buying interest was seen in banking and auto stocks with enhanced business prospects which are likely to be maintained,” he said.
Here is what experts suggest investors should do on April 29:
Chandan Taparia, Vice President | Analyst-Derivatives, Motilal Oswal Financial Services Limited
The index formed a Bullish candle on the daily scale and has been forming higher highs - higher lows since the last four sessions.
Now, the Nifty50 has to continue to hold above 14800 zones to witness an up move towards 15000 and 15150 zones, while on the downside, support exists at 14650 and 14500 zones.
Rohit Singre, Senior Technical Analyst at LKP Securities
The indices saw a gap-up opening in which the low of the day was the same as the opening levels. Nifty settled above 14850 with good gains of 1.5 percent.
The index has given descending channel pattern breakout on the daily chart which hints if current levels are held, we may see a good northward move in the near term.
The immediate support has shifted to the 14750-14650 zone, and the resistance is placed at the 14950-15000 zone. A fresh breakout can be seen above 15,000 mark which acted previously as a strong hurdle.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The market has successfully closed above the 14700 levels and this is a positive signal. We should now be headed to 15100.
The index has good support at 14300-14400 and as long as that holds, we could use any intra-day correction or dip to buy into this market for higher targets.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research Limited.
The market witnessed the continuation in the rally after the breakout above the level of 14550. On the upside, 14900 could act as a resistance in the market.
If the market breaks above the level of 14900 and sustains then a new bullish rally will take place which could take the index towards 15200.
The momentum indicators like RSI and MACD support the upside move and indicate potential upside from the current market level.
S Ranganathan, Head of Research at LKP Securities.
Bulls went on a rampage today with banks & autos (two-wheeler stocks) in focus. The HDFC twins & Bajaj twins lent good support to the Indices with the broader market displaying strength across sectors.
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