Nifty kicks off March with over 1% gains; Here's what to expect tomorrow
Top performers were PowerGrid, ONGC, Ultratech Cement, Asian Paint, Kotak Bank and Titan – rising as much as 5.94%
Benchmark equity index BSE Sensex climbed over a per cent on Monday as investors cheered the domestic economy returning to positive territory after two-quarters of contraction. The 30-share BSE Sensex closed 750 points higher at 49849,84. Likewise, the NSE Nifty index 232 points up at 14,761.
Of the Sensex constituents, 29 closed with gains. Top performers were PowerGrid, ONGC, Ultratech Cement, Asian Paint, Kotak Bank and Titan – rising as much as 5.94%.
After two consecutive quarters of contraction, the Indian economy has finally entered an expansionary path. The Gross Domestic Product (GDP) grew 0.4% in the October-December 2020 period compared with the same period a year back, data released by the National Statistics Office on Friday showed.
Here is what experts believe market participants should do on March 2
Shrikant Chouhan, executive vice-president (Equity Technical Research), Kotak Securities
Today, the market remained volatile moving in a narrow range of 100 points, between 14,680 and 14,780. It came down from the expected highs but managed to survive at a lower level. It could be due to the massive trading activity on Friday. The market remained bullish in the previous day’s trading range and created a bullish “harami pattern” on the daily chart. Tomorrow may be an important day for the market as the dismissal of 14,830 would be extremely positive for the market and the dismissal of 14,600 would be negative.
Manish Shah, Founder, Niftytriggers.com
Bears were not able to push the prices lower after the long red candle on Friday. Nifty takes support at rising 50-day moving average and at 50% retracement of 13,596-15,431 rally. Today, Nifty broke below minor swing low of 14,613 and reversed higher. The entire decline from 15,431 is breaking into an AB=CD pattern. If Nifty manages to trade above 14,980 it would mean a trend continuation pattern. The price action in Nifty is not bearish and it is perfectly logical to assume that, we are looking at a trend continuation pattern. The day-to-day volatility in Nifty has increased sharply with huge gaps from previous closes. The underlying trend in Nifty is bullish and what once looked as a trend reversal is taking shape of a trend continuation.
Resistance in Nifty is around 14,980-15,000. If Nifty does break above this high we are likely to see Nifty rallying towards 15,500-15,650 over the next couple of weeks.
Rohit Singre, Senior Technical Analyst at LKP Securities
Nifty formed a bullish harami sort of candle pattern on the daily chart which represents a change in immediate trend. If it managed to hold the previous week low then the index is good to go northwards. Index has formed immediate support near 14,640-14,580 zone and good resistance is coming near 14,810 zone. Any break above said levels can push index towards 15,000 mark again.