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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%
