Indian Stock Market is expected to open on a negative note amid concerns from prolonged US-Iran conflict. GIFT Nifty also shows a gap-down start as it trades at 22,909. The 92-point discount from its previous Nifty futures close is a clear indication.
On Monday Sensex surged 787.30 or 1.07% to close at 74,106.85. Nifty 50 advanced 255.15 points to settle at 22,968.25. The sudden rally added over Rs. 5 lakh crore to total market cap of companies listed on BSE.
Wider markets also added gains and Nifty Midcap 100 jumped around 1.5%. Smallcap 100 gained more than 1% and it shows improved risk appetite.
Technically, Sensex formed a green candle with a long lower shadow on the daily chart. Continued strength from Friday’s session is quite clear.
Immediate support can be seen at 73,000-72,500 which acts as a strong cushion on downside. If these levels are sustained overall structure will likely stay positive.
On the upside 75,000-75,500 will act as an immediate resistance zone. A break above this may trigger a sharp upside move as buying interest builds.
Nifty 50 formed a bullish candle on the daily chart and formed higher highs. It continued the pullback from last week’s lows.
Immediate resistance is at 23,000. A strong break above this key level will likely lead to a short-term rally towards 23,300.
Support can be seen at 22,600 and a break below this level will weaken current pullback rally and may drag index toward 22,400. Derivative data show a major call writing at 23,000 and 23,200 while heavy put writing can be seen at 22,900.
On Monday Bank Nifty jumped 1,060.35 points to close at 52,609.10. This formed a morning start pattern on the daily chart. Immediate resistance is at 53,000-53,200 and a sustained break above this zone could lead to a rally toward 53,600 in the short-term. Support can be seen at 52,200-52,000. A move below this level will put index under pressure.
Banking, Financials, Consumer Durables and Realty sectors gained around 2%. Meanwhile metals, Auto, and FMCG sectors posted gains of around 1%. IT stocks recorded modest gains while Media sector stayed relatively flat. On the downside Oil and Gas stocks underperformed to decline by 1.37%
Join our WhatsApp Channel to get the latest news, exclusives and videos on WhatsApp
_____________
Disclaimer: Analytics Insight does not provide financial advice or guidance on cryptocurrencies and stocks. Also note that the cryptocurrencies mentioned/listed on the website could potentially be risky, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. This article is provided for informational purposes and does not constitute investment advice. You are responsible for conducting your own research (DYOR) before making any investments. Read more about the financial risks involved here.