Sensex, Nifty hit record highs; here's what investors should do on Tuesday
The Sensex closed at 52,328, up 228 points, or 0.44%, while the Nifty rose 81 points, or 0.52% and settled at 15,751 for the first time
Indian benchmark equity indices started the week on a strong note and ended at record highs on Monday. The Sensex closed at 52,328, up 228 points, or 0.44%, while the Nifty rose 81 points, or 0.52% and settled at 15,751 for the first time.
Among broader indices, the BSE midcap and smallcap ended 0.78% and 1.38% higher, respectively. The Nifty midcap100 posted a record close. On the BSE, except BSE Realty, all other sectoral indices ended in the green.
Sustained foreign fund inflow also supported the markets. Foreign investors have infused close to Rs 8,000 crore into Indian equities in the first four trading sessions of June as risk-on sentiment improved amid rapidly falling new Covid-19 cases and robust corporate earnings.
Adani Ports, Power Grid Corp, NTPC, Shree Cements and Tata Motors were the top index gainers, while Bajaj Finance, Bajaj Finserv, HDFC, JSW Steel and Divis Labs were top losers.
Here’s how experts see markets trading on Tuesday
Manish Shah, Founder, www.Niftytriggers.com
Nifty had a bit of volatile movement as the index dipped to 15680 and moved higher for the day. It was a good start for the bulls after the market closed on a strong note the previous week. The weekly R1 pivot is placed at 15810 and above that the next R2 pivot is at 15960. A break above 15810 and expect the market to move higher towards 15960-16000.
Nifty continues to move higher with regular but small increments. This sort of a slow uptrend is a character of a market in a strong trend. Nifty is in a strong momentum as the ADX curves up and MACD is in a buy mode. This is a combination of a sustained uptrend in the index. Slow creeping uptrends can last a fair bit of time and markets can remain elevated for a long time.
Nifty rally could continue for some time and the preferred trades should be on the long side of the market.
Ajit Mishra, VP – Research, Religare Broking
Markets started the week on an optimistic note amid supportive global cues. The benchmark traded with positive bias throughout the day and healthy buying was seen across sectors. Further, the news of a steady fall in new COVID cases and announcements of easing in restrictions by several states boosted sentiment. All eyes are on PM Modi’s speech scheduled in the evening, for details on the vaccination drive and the roadmap for further ease in restrictions. And, we may see the reaction of the same in early trade tomorrow i.e. June 8.
On the benchmark front, we feel the recent underperformance from the banking space is certainly weighing on the sentiment and might trigger some profit taking too. However, buoyancy in other sectors viz. energy, IT and auto would cap the fall. Amid all, we advise continuing with bullish bias and use dips to add quality names.
Sumeet Bagadia, Executive Director, Choice Broking
Nifty has been trading in Higher Highs & Higher Lower formation, which suggests a continued upside move in the index. At present, the nifty seems to have resistance at around 15,850 levels while immediate support shifted up to 15,650 levels