Nifty eyes 10,200 again

The market gained sharply on strong buying in frontline stocks with the Sensex surging 317 points, or 0.90 per cent, to settle at 35,774. The Nifty 50 Index rose 81.20 points, or 0.76 per cent, to settle at 10,763.40. The S&P BSE Mid-cap Index rose 0.35 per cent, while the Small-cap Index rose 0.36 per cent. Both the indices underperformed the Sensex. Sensex heavyweights like ITC that was up 2.77 per cent, to Rs 283.90, Reliance Industries rising 1.96 per cent, to Rs 1149.60 and HDFC Bank up 0.76 per cent, to Rs 2014, helped the index to close higher.

Technical outlook

Pritam Deuskar, fund manager, Bonanza Portfolio, said, “Market range still stands between 10,000 to 10,800. It may bridge the gap from 10,720 to 10,843, which was gap down open some days back. Post 10,850 only, it will confirm to go upto 11,000. The Nifty has completed 38 per cent retracement whereas Bank Nifty completed 50 per cent retracement from bottom after recent fall. We are still cautious about going long. We may see 10,200 again in next few weeks. At the same time, private banks improvement started in NPA and profitability, which are having great weightage on Nifty with IT pharma , OMC and metals getting stable, Nifty EPS is unlikely to get slow. Hence, we think that buying can be initiated and staggered way can be increased.” 

Market outlook

Jayant Manglik, president, Religare Broking, said, “Markets started the week on positive note and ended with decent gains, in continuation to the prevailing recovery phase. Firm global cues combined with buying in select index heavyweights pushed the benchmark higher. Mostly sectoral indices participated in the move and closed higher. We reiterate our view preferring hedged position and booking

profit on rise, citing hurdle at 10,800 in Nifty. Investors have to see where does the dispute end. Support for Bank Nifty is placed at 26,100 levels and resistance comes at 26,400.”

—Ashwin Punnen

Columnist: 
Ashwin J Punnen