Traders should not go overboard and see how the Nifty behaves around the critical hurdle of 11,300, say experts.
Indian equity benchmarks logged strong gains for the second consecutive session on September 28, buoyed by positive global cues and reports that the government may come up with more stimulus measures to support the economy.
The Sensex jumped 593 points, or 1.59 percent, to 37,981.63 and the Nifty settled 177 points, or 1.60 percent, higher at 11,227.55.
The broader markets outperformed as the BSE midcap and smallcap indices jumped 2.68 percent and 2.54 percent, respectively.
Among the sectoral indices, BSE power (up 3.40 percent), BSE Bankex (3.38 percent) and BSE auto (3 percent) emerged as the top gainers.
"Expectations of a stimulus coupled with the capital support to state-run banks fuelled the rally in late afternoon trade. The postponement of the SC verdict by a couple of days provided a breather to the bulls as large-caps led the charge," said S Ranganathan, Head of Research at LKP Securities.
The Reserve Bank of India rescheduled the Monetary Policy Committee (MPC) meeting and is to announce the new dates shortly.
The six-member MPC was expected to announce its policy decision on October 1 after meeting for three days beginning September 29.
Most analysts and economists were of the view that the central bank would have gone for a status quo, with no significant impact on the mood of the market.
Experts share their views on what investors should do on September 29:
Ajit Mishra, VP-Research, Religare Broking
The rebound in global indices, combined with the hopes of a possible stimulus package, is helping markets to recover.
Easing of restrictions for tourism, education, hotels and the leisure segment, including cinema halls, under Unlock 5.0 will improve demand and investor sentiment.
Having said that, traders should not go overboard and see how the Nifty index behaves around the critical hurdle of 11,300.
We advise booking partial profit in trading positions around that zone and wait for more clarity.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The Nifty formed a long bull candle with an upside gap opening and the said up-gap remains unfilled. This is a positive indication and if this gap remains unfilled for the next two-three sessions, it could mean more upside for the near term.
The Nifty is placed at the minor trendline resistance at around 11,250 and this hurdle is expected to be broken on the upside in the next session. After this hurdle, one may expect 11,350-11,400 as crucial overhead resistance for the near term.
The short-term trend continues to be positive. There is a possibility of some more upside or range-bound movement in the next few sessions.
The upside bounce could stretch up to a maximum of 11,400-11,500 this or by next week before showing the next round of weakness from the highs. The immediate support is now placed at 11,050.
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
In the last two sessions, the Nifty index has rallied 450 points. Back to back rise has witnessed fantastic gains across all sectors.
Meanwhile, the market was waiting for the verdict on the interest waiver case from the Supreme Court, however, it got postpone by another three days triggering short-covering in financial stocks.
This saw a surge in Bank Nifty that gained 3.40 percent. Today, the Nifty index has left a bullish price gap between 11,072 and 11,100 levels.
Based on sectoral performance, we may even see the Nifty index approaching the resistance level of 50 days SMA at 11,300.
The support for the index exists at 11,150 and 11,070 levels. In the current scenario, one should adopt a buy on dips strategy.
Rohit Singre, Senior Technical Analyst at LKP Securities
The Nifty showed strength for the second consecutive session and closed the day at 11,228 with gains of 1.60 percent.
The index reached its immediate hurdle zone of 11,260, If it manages to sustain above it, then we may see a swift move towards the next hurdle of 11,350, support is placed at 11,170-11,120 zone.
The Nifty Bank has given a fresh breakout on intra-timeframe and closed the day at 21,666 with gains of more than 3 percent.
Support for the Nifty Bank is coming near 21,400-21,200 and resistance near 21,900-22,100 zone.
Aamar Deo Singh, Head Advisory, Angel Broking
Advances outnumbered declines by more than 4:1, indicating the intensity of the upmove. Technically, the Nifty has a very strong support zone around 10,800-11,000, whereas resistance on the upside is seen at around 11,350-11,400 zone.
Deepak Jasani, Head of Retail Research, HDFC Securities
Traders have come back on the long side hesitatingly, however, a lack of active selling helped indices to record sharp gains amid lower-than-normal volumes.
The Nifty could now face resistance in the 11,278-11,322 band.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.