Amar Ambani of YES Securities feels the year 2020 will continue to see high volatility even in the aftermath of the health crisis.
After two-week of consolidation, the market finally gained solid strength on April 7 fuelled by a rally in global peers amid hope that the worst is over in Europe and New York.
MSCI changes, under-ownership in pharmaceuticals, and reports from banking sector on healthy growth in advances as well as comfortable deposit position also lifted sentiment.
In absolute terms, the benchmark indices registered biggest ever single day gains on April 7, while in percentage terms, the biggest single-day gains were since May 2009.
The BSE Sensex closed above the psychological 30,000 mark for the first time since March 17, surging 2,476.26 points or 8.97 percent to 30,067.21.
The Nifty50 climbed 708.40 points or 8.76 percent to 8,792.20, following rally across sectors. Nifty Bank and Pharma gained the most with more than 10 percent rally, while Auto, FMCG, IT, Metal, Energy, Infra and Realty jumped 6-9 percent.
"Rally in the market is driven by positive news with regards to NewYork and Spanish data on the rate of coronavirus infections. The flattening of the curve would help a risk-on trade in the market," Abhimanyu Sofat, Head of Research at IIFL Securities told Moneycontrol.
However, for Nifty to go above the 9,000 levels, one would need some additional positive news on the domestic front with regards to coronavirus, he feels.
Amar Ambani, Senior President and Head of Research Institutional Equities at YES Securities feels the year 2020 will continue to see high volatility even in the aftermath of the health crisis.
It will be a great time to lap up stocks with a 3-year horizon but only after sufficient liquidity is kept aside for emergencies, he advised.
Technically also, the Nifty50 registered a Long White Day kind of formation on the daily chart. "In this process it registered a breakout above its Inverted Head & Shoulders formation on daily line chart which has opened up bigger targets towards 9,500 levels," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory at Chartviewindia.in told Moneycontrol.
However, this positive outlook will get negated if the Nifty closes below 8,360 levels, he said.
All Sensex and Nifty stocks closed in the green. IndusInd Bank was the biggest gainer with 22.6 percent rally, followed by Axis Bank, M&M, ICICI Bank, HUL, Maruti Suzuki, HCL Technologies, Nestle, Bajaj Auto, Reliance Industries, Hero MotoCorp, Sun Pharma, Bharti Airtel and HDFC Bank which gained 10-19 percent.But the broader markets have underperformed frontliners as the Nifty Midcap index gained more than 5 percent and Smallcap rallied around 3.5 percent.