The Nifty and the Sensex posted gains in Monday’s session. As the uncertainty surrounding the state polls ended and there are no near-term headwinds.
On the sectoral front, barring the Nifty Realty (-0.2 per cent), all the indices managed to post gains. The Nifty Metal (+2.0 per cent) and the Nifty Media (+1.3 per cent) gained the most. The Tata Motors (+4.2 per cent) and Power grid corporation (+3.7 per cent) were the major gainers whereas Kotak Mahindra Bank (-2.7 per cent) and Infosys (-1.7 per cent) were the losers among the Nifty50 stocks.
The Nifty Midcap (0.5 per cent) and smallcap (0.3 per cent) were up.
Sneha Seth derivatives Analyst at Angel Broking said that the benchmark index started-off the week on a very strong note; above the immediate hurdle of 10,840. Post some range bound move, momentum picked up in the latter half to bring index near 10,900 mark. In F&O segment, we saw addition of some fresh long positions in the Nifty as well as BankNifty.
In Nifty, we continued seeing fresh writing in index ATM puts along with unwinding in OTM call options. 10,800 and 10,900 put options added good amount of shorts; whereas, good amount of unwinding took place in 11,000 call options. The volatility index also plun-ged to 13-weeks low (14.54 per cent), which is a good indication. Considering the overall F&O data, we expect continuation of this rally towards 11,000-11,100; hence, traders should trade with a positive bias going ahead.
Jay Thakkar, CMT head technical and derivatives research - AVP Equity Research, Anand Rathi Shares and Stock Brokers said, “The Nifty closed well in the positive territory and it has confirmed higher tops and higher bottoms on the hourly charts which indicate that the bulls are in command. The momentum indicator MACD is well in buy mode. The minimum target on the upside is pegged at 10,980 whereas support is pegged at 10,820 levels.
The Sensex too closed in the positive territory. The broader markets have shown good positive buy crossover which indicates that the major negatives in the markets have been priced in and the Index seems to be forming higher tops and bottoms. The support on the lower side is pegged at 36,050 and below those 35,780 levels whereas resistance on the upside is pegged at 36,550 levels and above those it can climb till 36,720.