Indian markets today ended higher after a rebound from a nearly three-month low. Metal and financial stocks led the gains as investors outpaced the massive rise in greedy infections. The NSE Nifty 50 index rose 0.77% to 14,406 after falling to 14,151 in early trading. The BSE Sensex scored 375 points to finish at 48,080.
“Nifty opened lower and even broke below Tuesday’s low due to concerns about growing infections. But that the initial cuts weren’t too deep, encouraged discount hunters who also took indications of a fall in U.S. fiscal yields as well as strength in the U.S. as well as Asian stock markets, ”said Anand James, Chief Market Strategist at Geojit Financial Services.
U.S. pharmaceutical giant Pfizer Inc said today it is talking to the Indian government about supplying its vaccines, adding that it would set a nonprofit price for them.
India today has reported more than 300,000 recent coronavirus infections, the highest daily increase anywhere in the world. India currently administers about 3 million doses per day.
Metal stocks grew 1.7%, with Tata Steel gaining 3.1% after its unit Tata Steel BSL reported a jump in quarterly net profit. Nifty Bank index grew 1.8%, with heavy HDFC Bank Ltd gaining 2.2%.
Analysts say Nifty crossing 14500 levels will be key for further ascent, while a break from today’s lows of 14.151 could cause further downside.
Here are the key levels to watch in upcoming sessions:
Deepak Jasani, Head of Retail Research, HDFC Securities
Despite an increase in Corona cases, traders were looking for bottom fishing on F&O’s weekly expiration day, reversing a streak of two-day loss. Volumes on NSE conformed to recent averages. Disgusting after creating a new recent low of 14151, today created a bullish penetrating pattern today. However transition 14526 will be key for further upward movement. A previous declining ratio positively suggests that investors are comfortable holding and buying small and medium caps before the resulting season. “
Shrikant Chouhan, Executive Vice President, Stock Technical Research at Kotak Securities
“The Nifty / Sensex formed an optimistic piercing pattern closing above the previous day’s average which was at 14367/47958 levels found at the end of a low trend. Based on it, our strategy should be to create long positions with between 14350/47950 and 14300/47700 levels.On the higher side, we would see the levels of 14530/48500 and 14580/48650.Closing above the levels of 14580/48650 would validate the formation of a bullish reversal and in that case, the Nifty / Sensex may rise to even 14850/50000 levels where it has the biggest hurdle.On the other hand, 14250/47690 and 14150/47200 would be major supports.Keep a final stop loss at 14150/47200 to create any long position.Today the market size has been healthy and it was mainly due to renewed buying interest in Finance. The Bank-Nifty closed at the highest point of the day. The focus should be on Finance and Metal stocks. “
Rohit Singre, Senior Technical Analyst at LKP Securities.
“Again the index showed a good withdrawal from its strong support and managed to close a day with a positive note at 14400 zone with gains of almost one percent forming a bullish candle on the daily chart. On the higher side index has a rigid obstacle at 14450 -14500 zone if it manages to hold above 14500 then we may see the extension in current retreat to 14700-14900 zone in near term but it failed to hold above 14500 zone then again profit reserve is visible from higher range to immediate support zone of 14350-14250 zone “
Manish Hathiramani, Property Index Trader and Technical Analyst, Deen Dayal Investments
“The markets failed to break today’s low of 14130 and widened to close above 14400. Unless we break today’s low and hold below it for a few hours, the markets will not enter a bearish phase. If it manages to break the lows, we could drift down to 13800. The top is limited to 14550. ” (With Reuters Inputs)