With Sensex closing above 51,000, what should be investor’s action for Thursday?

Experts say the index has to stay above 15,250 to advance upward towards the all-time highs of 15,431 and 15500, while support can be found at 15,200 and 15,100 on the downside.

On May 26, the bulls maintained control of D-Street, following bullish global market trends and pushing the S&P BSE Sensex above 51,000 for the first time since March 10 and the Nifty50 above 15,300 for the first time since February 16.

The S&P BSE Sensex climbed 379 points to 51,017, while the Nifty50 gained 93 points to 15,301.

The S&P BSE midcap index dipped 0.14 percent, while the smallcap index rose 0.69 percent, indicating that broader markets underperformed.

Real estate, IT, consumer discretionary, auto, and financial stocks all saw purchasing, while metals saw profit booking after a downgrade from Credit Suisse, followed by power and utility sectors.

“Domestic markets opened cautiously bullish and saw a significant bounce as anticipation for another set of relief measures gathered traction. According to Vinod Nair, Head of Research at Geojit Financial Services, “the new stimulus package is expected to focus on bolstering the worst-hit industries including tourism, aviation, and hospitality, as well as MSMEs.”

He continued, “Value purchasing was witnessed in the IT sector, while metals stocks remained in the correction phase due to dampened worldwide commodities prices.”

Experts predict that the Nifty will retest its previous record high of 15,431, and that any dips towards 15,250 will be a buying opportunity.

Here’s what experts think that investors should do on May 27:

Chandan Taparia, Vice President | Analyst-Derivatives, Motilal Oswal Financial Services Limited

On a daily scale, the Nifty developed a bullish candle with a long lower shadow and has been creating higher highs-higher lows over the last four sessions.

To see an uptrend towards the lifetime highs of 15,431 and 15,500, the index must now stay above 15,250. On the downside, the 15,200 and 15,100 zones provide support.

Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities

The market had a one-of-a-kind day on Wednesday. The market initially fell, but it quickly recovered and continued to stabilize about 15,300.

The good news is that the Nifty ended above 15,300, with 15,430 as the next major resistance level, which the index may revisit on May 27.

The market’s breadth was robust, and technology was in a bullish mood during the day’s upswing. The Nifty was also helped by a few financials.

We believe that if the Nifty starts at 15,400-15,430 on May 27, investors must take profits on long bets. Near 15,250 and 15,150, the market finds strong support.

Rohit Singre, Senior Technical Analyst, LKP Securities

The index gained traction after two consecutive lacklustre sessions, closing the day at 15,301, up 100 points, and forming a small bullish candle on the daily chart.

The index has changed its support to the 15,250-15,200 zone once again, and as long as it remains above these levels, the Nifty can see more strength, and we might witness a return to previous swing highs.

The nearest stumbling block is located in the 15,370-15,430 zone.

Capital’s Technical Research Head, Ashis Biswas Global Research Limited is the source of this information

The market saw a strong trend after a few days of lacklustre action. The market’s predicted levels are likely to be in the area of 15,100-15,400.

Maintaining above 15,100 will be critical for the short-term market condition. The trend is supported by momentum indicators like the RSI and MACD, which imply possible upside from the current market level.

 

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