Benchmark indices staged a stellar recovery rally in the previous session a day after the market came under strong selling pressure due to ultra-hawkish stance of the US Federal Reserve. Sensex closed 1,564 points or 2.70 per cent higher at 59,537 and Nifty surged 446 points or 2.58 per cent to close at 17,759.
On the sectoral front, banking shares were the top gainers with the BSE bankex rising 1,458 points to 45,295. Consumer durables and auto shares also gained, with their BSE indices rising 1,016 points and 762 points, respectively. All 19 BSE sectoral indices ended in the green.
The market breadth was positive with 2,403 shares ending higher against 1,022 stocks in the red. 127 shares were unchanged. Market cap of BSE-listed firms rose to Rs 280.21 lakh crore.
Here's a look at what analysts said about the direction the market is likely to take today.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
"Nifty seems to have reversed the recent down trend sharply on the upside. Now, the bulls are ready to show big bang upside breakout of the resistance of around 16,900 levels by this week end or by next week. A decisive move above 17,900 levels could pull Nifty towards the next upside target of 18,300-18,400 in the next few weeks. Immediate support is placed at 17,600 levels."
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
"Due to temporarily overbought conditions, we may see range-bound activity in the near future. For traders 17,550 or the 20-day SMA could be an important level to notice. Above the same, the index could accelerate to the level of 17,800-17,850. On the other hand, an uptrend below 17,500 would be weak. If the Nifty crosses the 18,000 level then, the index could surge to 18,300-18,350.”
Deepak Jasani, Head of Retail Research, HDFC Securities
"Nifty has nullified the bearish signals from the downgap created on the previous day and has filled that downgap. It has closed at the highest ever on monthly charts. It will now face resistance at 17,965-17,992 band while 17,522-17,623 band could offer support."
Rupak De, Senior Technical Analyst at LKP Securities
"The RSI on the other hand is still in a bearish crossover. The trend after today's massive movement looks positive. Over the short term, the index may move towards 18,000-18,100. On the lower end, support is visible at 17,500."
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