After The Bell: Sensex back above 50K, what should investors do on Monday?

Market Outlook

The Indian market bounced back from the lows on April 1 to climb above crucial resistance levels, tracking positive global cues. The S&P BSE Sensex rose 520 points to 50,029, while the Nifty50 closed with gains of 176 points at 14,867.

Markets will remain closed on April 2 on account of Good Friday.

On April 1, buying was seen in metals, utilities, power, infrastructure space, while FMCG and consumer durables saw profit booking.

On the technical front, Nifty will witness some resistance around 14,900-15,100, while support is seen around 14,700, experts say.

“Markets across the globe were boosted by (Joe) Biden’s $ 2.3-trillion spending plan. The rally in the domestic market was led by positive cues from global peers, strong buying in metal stocks and recovery in the banking sector,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.

Metal stocks outperformed other sectoral indices on reports of a possible price hike. PSU banks were also in focus, as the government announced a capital infusion of Rs 14,500 crore in four PSBs, he said.

Here is what experts suggest investors should do on April 5:

Chandan Taparia, Vice President | Retail-Research, Motilal Oswal Financial Services Limited

The Nifty50 has been forming higher lows from the last four trading sessions and managed to cross a recent swing high, which bodes well for the bulls.

The index settled the day with gains of around 170 points and formed a bullish candle with a long lower shadow, indicating buying was seen on declines.

The index has to hold above 14,800 to witness an up move towards 15,000 and 15100 zone, while on the downside, support exists at 14,700 and 14,600.

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

The market witnessed a positive trend. Recovery from the support level of 14700 is a positive from a short-term perspective.

If the index sustains above 14700, which improves the odds of a fresh breakout above 14900-15300 levels.

The momentum indicators like RSI and MACD support the upside move, indicating that a fresh breakout is highly likely.

Ajit Mishra, VP-Research, Religare Broking Ltd

The Indian market is likely to take cues from global peers as stimulus package announced in the US led to a renewed buying interest in global markets.

In the near term, positive bias is expected to continue, however, rising COVID cases in India would remain a key concern. As Q4 earnings season approaches, investors’ focus will shift to earnings announcements and management commentary.

Rohit Singre, Senior Technical Analyst at LKP Securities.

The Nifty has formed a broader consolidation zone of 14,300 on the downside and 15,400 on the higher side.

Very soon we may see a fresh breakout above 14900, which can be considered as an immediate small consolidation breakout and then we may see the next leg of the rally towards 15,400 in the near term. Good support is still at 14,700.

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