The BSE Sensex surged over 1,000 points whereas Nifty surged 1.8% on Thursday, tracking an overall bullish trend in global equities despite the US Federal Reserve hiking rates and signalling further policy tightening to tame inflation. On Monday, Asian stocks were steady as crude oil jumped. Meanwhile, SGX Nifty indicates a positive start for the Indian indices today.
“With most of the major events behind, India VIX has cooled off significantly to 22.6 levels, thus supporting the overall bullish sentiments. Another major support for the market came in from the FIIs who have also turned positive after being net sellers for long. While the large cap had been participating in the recent rally, we are now witnessing strong interest in the broader market as well,” said said Siddhartha Khemka, Head – Retail Research, Motilal Oswal.
Also some of the underperforming sectors like Insurance, real estate, durables, building materials, beverages, chemicals etc were in action, indicating buying in broader market. We expect the current momentum in market to continue next week as well with broad based participation,” Khemka added.
The significant overhead resistance of 16800-17000 levels has been broken decisively on the upside on Thursday and Nifty closed above it. This market action could be considered as a sharp upside breakout of important hurdle and this is likely to have further positive impact on the market ahead, as per said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
“Previously, the area of 16800-17000 level has acted as a strong support for the market in past and the recent downside breakout of it has resulted in a 1000 points decline in short span of time. Hence, present decisive upside breakout of this area could indicate continuation of sharp upside momentum for the near term. The potential upside targets to be watched around 17800-18000 levels in the next few weeks. Immediate support is placed at 17050 levels,” Shetti added.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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