Indian market closed in the green for the third consecutive day in a row on May 7 pushing the Nifty50 back above 14,800 levels on a closing basis, and also its 50-Days Simple Moving Average (SMA).
The 50-Days SMA is placed at 14,729 while the 50-Days Exponential Moving Average (EMA) is placed at 14,624. A close above the short-term moving average has opened the doors for the index to head towards 15,000 levels.
Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 256 points to close at 49,206 while the Nifty50 rallied 98 points to end at 14,823.
Sectorally, buying was seen in metals, basic material, public sector, and telecom while profit-taking was visible in consumer durables and capital goods space.
On the broader markets front – the S&P BSE Midcap index fell 0.8 percent, and the S&P BSE Small-cap index was down 0.7 percent.
“Market opened with a gap up tracking heavyweight’s gains and was able to maintain its optimism to the end, supported by the global market. Global bourses were largely positive as easing restrictions on movement in the US & Europe along with the expectation of better US job data signalled a faster economic rebound in the western markets,” Vinod Nair, Head of Research at Geojit Financial Services said.
“Metals stocks are continuing its upbeat movement on improved sectoral outlook while mid-cap stocks underperformed their peers,” he added.
Here is what experts say investors should do on May 10:
Expert – Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The market has held 14,700 smartly! We need to see if these levels can hold on Monday; if it can, we should be headed to 15,200. If we do not hold, we will retrace back to the support levels of 14,400. Holding 14,400 is imperative for Nifty.
Expert – Ashis Biswas, Head of Technical Research at CapitalVia Global Research
The market witnessed an extension in the trend that started yesterday after breaching the important level of 14,700. The rally might continue till the level of 14,900.
Though it is subject to further price action if the market breaks the level of 14,900 and sustains above the level a new bullish rally will take place till the levels of 15,200.
The momentum indicators like RSI and MACD support the upside move and indicate potential upside from the current market level.
Expert – S Ranganathan, Head of Research at LKP Securities.
Metals fired up yet again to pull Indices up with support from key Pivotal. The broader markets witnessed buying interest in Mortgage companies post good earnings from HDFC. Profit Taking was witnessed in few high-quality Midcaps in Today’s Trade.
Expert – Chandan Taparia, Vice President, Analyst-Derivatives, Motilal Oswal Financial Services Limited
The Nifty index formed a Doji candle on the daily scale but a Bullish candle on the weekly frame which indicates that declines are being bought while hurdles are intact at higher zones.
Now, it has to hold above 14750 zones to witness an up move towards 15000 -15050 zones while on the downside support exists at 14700 and 14600 zones.
Disclaimer: The views and investment tips expressed by the investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
