Bulls vs Bears: Here's what to expect on Dalal Street today

Benchmark indices ended higher for the fourth straight session on Wednesday led by a surge in IT and banking stocks. Sensex rose 630 points to 55,397 and Nifty gained 180 points to 16,520. Buying in index majors Reliance Industries and Infosys also supported sentiment.

Mid cap and small cap indices rose 59 points and 110 points, respectively. Banking, IT and metal shares were the top sectoral gainers, with their BSE indices rising 275 points, 721 points, and 223 points, respectively.

Market breadth was positive with 1,930 stocks ending higher against 1,424 stocks falling on BSE. 135 shares were unchanged. The market cap of BSE-listed firms rose to Rs 258.13 lakh crore on BSE against Rs 256.54 lakh crore in the previous session.

Here's a look at what analysts said about the direction the market is likely to take today.

Osho Krishan, senior Analyst - Technical & Derivative Research, Angel One

"Going forward, our market is likely to remain upbeat in the near term, wherein any minor dip could be seen as an opportunity for the bulls to add long positions. We might also witness major traction outside the indices in the broader market space. Hence, it’s advisable to keep focusing on such potential movers, which are likely to provide better trading opportunities. Meanwhile, keeping a close tab on global and domestic macro developments is advisable."

Om Mehra, Technical Associate, Choice Broking

The recovery in Nifty from their recent lows indicates the resilience of the markets and its potential to scale higher. OI Data indicates, on the call side the highest OI witnessed at 16600 followed by 16700 strike prices while on the put side, the highest OI was at 16400 strike price. Bank nifty has support around 35,450 while resistance is placed at 36,500. Currently riding against the trend must be avoided and one should look for blue chip stocks for long term investment.

Rupak De, Senior Technical Analyst at LKP Securities

"Nifty found resistance at the higher levels as it reached the upper band of the rising channel on the daily chart. Over the near term, the index may consolidate till it gives a breakout above 16,600. On the lower end, 16,350-16,400 may remain crucial support. A buy on dips strategy is likely to work as long as the Nifty holds above 16,350."