After The Bell: Sensex rallies 1,100 points! What should investors do on Thursday?

Market Outlook

Bulls roared for the third consecutive day on March 3 pushing both Sensex and Nifty50 above crucial resistance levels. The S&P BSE Sensex rallied more than 1,100 points while the Nifty50 climbed above 15,000 levels.

Both Sensex and Nifty50 rallied by over 2 percent each – their best gains since February 2.

Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 1,147 points to 51,444 while the Nifty50 closed with gains of 326 points to 15,245.

Sectorally, the action was seen in energy, metals, finance, banks, and IT stocks while mild profit-taking was visible in the auto space.

On the broader markets front – the S&P BSE Mid-cap index rose 1.4 percent while the S&P BSE Small-cap index was up 1.3 percent.

Experts are of the view that positive global cues, buying by foreign investors, fall in US Treasury Yields, strong micro as well as macro data-fuelled bullish sentiment triggered a risk-on rally.

“Markets across the globe were filled with optimism as the focus shifted from concerns over high valuation to a stronger economic recovery and earnings growth. The Indian market was on a rising streak echoing the global sentiment,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.

“The NiftyBank which had a rough week so far took a breather and led the rally while consolidation was seen on auto stocks,” he said.

Here is what experts suggest investors should do on March 4:

Rohit Singre, Senior Technical Analyst at LKP Securities.

One more positive session and index closed a day with supreme gains of more than two percent at 15,240 zones and formed a bullish candle for the third consecutive day.

Bullish Harami candle pattern showed a fantastic impact so far. Going forward, 15,150 will act as strong support followed by 15,100 zone.

If the index manages to hold the above-said levels, we may see the current move extend further towards the 15,300-15,400 zone in the near term.

Ashis Biswas, Head of Technical Research at CapitalVia Global Research Limited

The market extended gain further after the decisive breakout of the Nifty 50 Index level from 14,850. The market is likely to hold the momentum and reach the level of 15,280-15,300.

14,970-15,000 level is expected to act as a support zone from the short-term perspective. Indicators like RSI, MACD to stay positive and the upside movement is likely to continue.Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities

Nifty continues to remain in a medium-term uptrend. We believe any meaningful correction is an opportunity to buy for 16,000 and higher.

The immediate range is seen at 15,000-15,500 levels. Auto and Banking stocks look attractive at current levels; IT stocks also expected to trade with positive bias.

Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services Limited

Nifty formed a strong Bullish candle with a lower shadow on the daily scale which indicates that bulls are back on the track to head towards new lifetime high zones.

It continues forming higher lows from the last three trading sessions and supports are gradually shifting higher.

Now, it has to continue to hold above 15,150 zones to extend its move towards 15,400 and 15,500 zones while on the downside immediate support exists at 15,000, and then towards 14,900 levels.

Shrikant Chouhan, Executive Vice President (Equity Technical Research), Kotak Securities

It was the busiest day for the market. The broad support of all sectors in the market clearly shows that it will not be difficult for the Nifty / Sensex to cross the previous high of 15,432/52,517.

The market has taken a strong lead and closed at the highest point of the day, with support for Tuesday’s continuity formation. Technically, the Nifty/Sensex is recovering from a corrective pattern and traders need to be cautious until the Nifty 50 index comfortably crosses 15,435.

The Nifty/Sensex may remain range-bound between the levels of 15,370/51,800 to 15,100/51,000 on the closing day of the weekly period of options contracts.

The Nifty/Sensex may move to the level of 16,000/54,200 in the next few days or weeks on the decisive dismissal of the level of 15,435/52,520. On Thursday try to be stock specific in the market.

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