The 30-share BSE Sensex ended higher by 539.50 points or 0.75% at 72,641.19 level while the Nifty 50 closed at 22,011.95 level, up 172.85 points or 0.79%.
With Nifty Realty leading the pack at 3% and Metal Index up 2.44%, all sectoral indices traded comfortably in the green. Interestingly, broader markets—which had been underperforming for a while—soared upward and outperformed the benchmarks. The Nifty Smallcap Index rose by 2.51%, while the Nifty Midcap 50 gained 2.55%.
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As the Federal Reserve announced that it will stick to its plan to cut interest rates three times this year, even if inflation remained over its long-term objective, Vinod Nair, Head of Research at Geojit Financial Services, explained that the domestic market is drawing signals from the global market, which is bringing confidence.
The broader market outperformed the frontline index, which also benefited from the positive economic conditions shown by the HSBC composite PMI data, which increased to 61.3% in March from 60.6 in February, said Nair.
Nifty 50 Outlook
The index is in corrective mode, forming lower tops and bottoms on the hourly time frame. Currently, the index is sustaining below 20-day SMA, which reconfirms short-term corrective mode. The Nifty 50 has violated its up-sloping trendline support for the past few months at around 22,000 and has sustained below the same. However, the medium- to long term is intact to bullish. Hence, any significant corrections towards 2,150 levels remain a buying opportunity. An immediate overhead resistance zone is placed at 22,000–22,200 levels, said Rajesh Palviya, SVP – Technical and Derivatives Research, Axis Securities.
The Nifty 50 in the current series has witnessed a short build-up with a marginal price cut of -0.40% (63 points) and open interest gains of 16%. As per the options data of the current expiry scheduled for March 28th, the resistance is indicated at 22,200 and 22,500, while support is at 21,800, 21,700, and 21,500, stated Palviya.
Also Read: Infosys: 3 reasons why UBS Research expects more than 15% upside for the stock
Stock Recommendations For Friday By Rajesh Palviya, SVP – Technical and Derivatives Research, Axis Securities.
On the daily chart, the stock has confirmed a “rounding bottom” formation breakout at 4,100 levels on a closing basis. This breakout is accompanied by huge volumes, indicating increased participation. The stock has recently recaptured its 20, 50, and 100-day SMA and rebounded sharply. The stock has also confirmed “triangular” formation on the weekly time frame, indicating a trend reversal. The daily, weekly, and monthly strength indicator RSI is in positive terrain, which reconfirms rising strength, said Rajesh.
Investors should buy, hold, and accumulate this stock with an expected upside of 4,430–4,550 with downside support zone of 4,090–3,930 levels, advised Palviya.
The stock is in a strong uptrend across all time frames, forming a series of higher tops and bottoms, indicating bullish sentiments. The stock has also registered an all-time high at 2908, indicating a positive bias. The daily “band Bollinger” buy signal indicates increased momentum. Currently, the stock is well placed above its 20, 50, 100, and 200-day SMA, which reconfirms bullish sentiments, explained Rajesh.
Investors should buy, hold, and accumulate this stock with an expected upside of 3,000–3,060 with a downside support zone at 2,800 levels, advised Palviya.
Cummins India has witnessed short covering in the current expiry with price gains of 5% (150 points) and a decrease in open interest by -6%. There has been writing seen at 3,000 call strike indicating a probable resistance zone, while the support is at 2,800, as the 2,800 put strike has a high open interest concentration, followed by 2,700, said Rajesh.
With today’s strong gains of 5%, the stock has witnessed a “multiple resistance zone ” breakout at 4,955 levels, indicating a positive bias. In the past couple of sessions, the stock has recaptured the 20, 50, and 10-day SMAs, reconfirming bullish sentiments. A huge volume breakout signifies increased participation in the rally. The daily and weekly strength indicator RSI is positive, indicating rising strength. The daily “band Bollinger” buy signal indicates increased momentum, said Palviya.
Investors should buy, hold, and accumulate this stock with an expected upside of 5,200–5,310 with downside support zone at 4,815–4,780 levels, advised Rajesh.
Polycab India has seen short covering in the March expiry with price gains of 5% (244 points) and unwinding in open interest by -5%. Significant writing on the call side is seen today at 5,100, 5,200, and 5,500 pointing towards the resistance zone; while support is at 4,900 and 4,800, according to Palviya.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 21 Mar 2024, 05:20 PM IST