Sharekhan highlighted that the Nifty had a negative start with a gap-down opening on account of global cues on Tuesday. The bulls however, moved in swiftly and bought into the dip. As a result, Nifty witnessed a steady rise as the day progressed and closed near the high point of the day. On the way up, the Nifty has achieved an equality target of 14200. The overall structure shows that the positive momentum can continue going ahead and the Nifty looks set to head towards 14600 in the short term. On the other hand, 14000-13950 will act as a cushion on the downside.

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Other technical observations On the daily chart, the Nifty is above the 20-day moving average (DMA) and the 40-DEMA, of 13724 and 13311 respectively. The momentum indicator is bullish on the daily chart. On the hourly chart, the Nifty is above the 20-hour moving average (HMA) and the 40-HEMA, of 14090 and 14015, respectively. The hourly momentum indicator is bullish. The market breadth was positive with 1084 advances and 842 declines on the National Stock Exchange.

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Ajit Mishra, VP - Research, Religare Broking said that Markets managed to end in the green in yet another volatile session amid mixed cues. Initially, the benchmark opened lower by weak global cues and traded dull in the first half. However, the mood again changed with a strong surge in the banking and IT majors which aided the index to close around the day’s high. Among the benchmark indices, the Nifty index ended around 14,200, up by 0.5%. The broader market indices continued their outperformance and ended higher in the range of 0.7-1.4%. The mixed performance was witnessed across sectoral indices wherein metals and energy were the top losers.

Markets are showing tremendous resilience on every dip but still lack decisiveness. We feel the global COVID situation and progress of the vaccine drive would remain in focus, at least in the near future. On the domestic front, the start of the Q3FY21 earnings season would hold importance as expectations are high this time around especially for consumption names as high-frequency indicators have pointed towards a healthy recovery in demand. Amid all, we reiterate our positive yet cautious stance on markets and suggest sticking to fundamentally sound stocks.