The Indian stock market has witnessed yet another gap-up opening on the back of a positive Asian cues. Sensex is up 688.62 points or 1.39 percent at 50269.35, and the Nifty jumping 203.10 points or 1.36 percent at 15126.30.
Traders and investors have breadth a sigh of relief as the country has added less than 3 lakh cases of positive Covid cases for second straight day. The total cases have seen the lowest single-day rise since April 20.
Among the sectors, the metal, auto and the oil & gas sector have added over 2 percent each.
Financial stocks have been the top index gainers led by Bajaj Finance which jumped over 4 percent followed by Power Grid, Titan Company, Bajaj Auto and HDFC Bank.
Research firm Way2Wealth Research is of the view that Nifty seems to be forming ‘Inverse Head and shoulder pattern’ and the neckline of that is coinciding with the above said resistance of 15040 levels.
“A convincing breach of 15040 would provide a strong breakout in the Index. Momentum indicators RSI (14) and stochastic oscillator are still on the mixed note. Therefore, the leve of 15040 would be key resistance for the day,” it said.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments feels that Nifty successfully got past the resistance block of 14,850 yesterday and we see a gap up today. We can attempt 15,200 on the index.
“The trend is bullish and dips can be utilized to buy into the index. Good support lies at 14,700 and until this does not break on a closing basis, the trend of the market will continue to be strong,” he said.
All sectoral indices are trading in the green with BSE Midcap and smallcap indices gaining over a percent each.
As the market edged high heavyweights including names like State Bank of India, up 1 percent followed by Tata Steel, Tata Motors, Reliance Industries and Bajaj Finance were the most active stocks.
India volatility index is down 3.62 percent and is trading at 18.90 level.
256 stocks have hit new 52-week high on BSE including Power Grid, KEI Industries, Gland Pharma, Motherson Sumi Systems, Bajaj Finserv, Hindustan Zinc and Bharat Forge among others.
“The positive trigger for the market now is the steadily declining fresh Covid cases and the steadily rising recovery rates. The market is discounting progressive lifting of the widespread lockdowns starting in early June. Even though growth & earnings will be impacted in Q1, smart recovery can be expected in the subsequent quarters,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“Sectoral rotation and value buying is pushing up financials particularly banking stocks. The latest trends indicate that the stress in the banking system is not as bad as feared earlier. With progressive unlocking of the economy, credit growth is likely to pick up starting June improving the prospects for frontline financials. Market action is likely to be stock specific in the coming days with the market responding to Q4 numbers and likely trends,” he added.
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