After The Bell: Sensex fails to hold on to 50K, what should investors do on Friday?
Indian markets remained volatile on April 8 but indices managed to close in the green for the third consecutive day despite profit-taking at higher levels.
The S&P BSE Sensex failed to hold on to 50,000 and the Nifty50 also closed below 14,900 but the overall trend still remains on the upside. The Sensex closed 84 points higher at 49,746, while the Nifty50 gained 54 points to 14,873.
Sectorally, buying was seen in metals, consumer durables, industrial, IT, and realty stocks, while profit-taking was seen in power, utilities, banks, and energy space.
Strong global cues, dovish monetary policy and expectations of a strong March quarter supported bullish sentiment.
“Domestic market continued its optimistic rally supported by dovish monetary policy, though it witnessed consolidation during the second half due to selling in the banking stocks,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.
Metal stocks led the sectorial rally on a strong outlook supported by rising steel prices and production. The fourth-quarter earnings season has started and the market is expected to have a stock-centric rally in the coming days, he said.
Here is what experts suggest investors should do on April 9:
Ashis Biswas, Head of Technical Research, CapitalVia Global Research Limited
The market was lackluster on April 8. A breakout above the resistance level of 14,900 will be positive from a short-term perspective.
If the index sustains above 14900, the momentum can take the Nifty towards 15,300. Momentum indicators like RSI and MACD support the upside move, a signal that the short-term trend is likely to stay positive.
Chandan Taparia, Vice President | Analyst-Derivatives, Motilal Oswal Financial Services Limited
The Nifty formed a Doji candle as after a wild swing within a range of 160 points, it closed near the opening levels but closed in the green with gains of around 50 points.
The index continued to form higher lows from a third session. Now, it has to decisively hold above 14,880 to witness a range breakout and an up move towards 15,000 and 15,100, while on the downside support exists at 14,750 and 14,650 levels.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The Nifty crossed 14,950 but failed to hold on to it and to again close below 14,900.
If the index gets past 14950 on a closing basis, it can move to 15,300-15,400. But a drift downwards and a break below 14,500 will further see it slip to 14,200.
Mazhar Mohammad, Chief Strategist–Technical Research & Trading Advisory, Chartviewindia.in
Until the Nifty manages a strong close above 14,900 levels, one should prepare for a sideways trend but with a negative bias.
Therefore we advise intraday traders to short below 14,820 and look for a modest target close to 14,700. Buying in the index should not be considered till a strong close above 14,900.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.