Taking Stock: No lockdown for bulls! Short covering helps Nifty climb 8,300 levels
Short covering on D-Street helped bulls take out crucial resistance levels on March 25, a day ahead of F&O expiry. The S&P BSE Sensex rallied more than 1,800 points while Nifty50 reclaimed 8,300 levels.
Ajit Mishra, VP - Research, Religare Broking:
The recent positive announcements from the US Fed and rising hopes of a stimulus package from the Indian government have lifted sentiments. Going forward, we expect volatility would remain high in the near term and any sustainable rally would largely depend upon how effectively we can contain the spread of Coronavirus now with a 21-day nationwide lockdown in place.
Deepak Jasani, Head Retail Research, HDFC Securities:
Technically, while the Nifty has bounced back, the short term trend remains down. The Nifty could resume its downtrend if the immediate supports of 8174-7966 are broken. Any further pullback rallies could find resistances at 8377-8576.
Amit Shah, Technical Research Analyst with Indiabulls Securities:
A phase of relief rally seems to be unfolding and once the index sustains above 8,300 zone expect a larger recovery towards 9000 plus. Short-covering rallies a sharper at least in the first phase of recovery. Given the expected recovery, we have initiated positional buy on Nifty call option.
Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities:
We expect the downward pressure to seize and some consolidation to happen in the next few weeks. On the larger time scale, we believe test of sub 8000 levels could indicate possibility of completion of a larger timeframe correction. This is expected to followed by range bound movement with high volatility within the range.
Rohit Singre, Senior Technical Analyst at LKP Securities:
If index managed to hold above 8200 then we may see some more upside towards immediate resistance of 8500-8700 zone and support for index is coming near 8150-8000 zone.
Market Close: The relief rally continued on the second day on March 25 with Nifty finished near 8,300 level on the back of possible announcement of fiscal measures from the government.
The Sensex was up 1,861.75 points or 6.98% at 28535.78, and the Nifty was up 516.80 points or 6.62% at 8317.85.About 1194 shares have advanced, 976 shares declined, and 153 shares are unchanged.
Reliance Industries, HDFC Bank, Kotak Mahindra Bank, UPL and Grasim Industries were among major gainers on the Nifty, while losers were Yes Bank, IndusInd Bank, IOC, Coal India and GAIL.
All the sectoral indices ended in the green.
India's oil production in Feb dips 6.4%: India's oil production fell 6.4 per cent in February as a decline in output from fields operated by private firms negated a rise in production from ONGC fields. Crude oil production at 2.39 million tonnes in February was 6.41 per cent lower than 2.56 million tonnes output in the same month a year back, according to official data released by the oil ministry here: PTI