Markets cheer RBI's accommodative stance. Here's how experts see markets trading on Thursday
RBI’s decision to maintain its high GDP growth forecast helped the market to calm down its fears
Indian benchmark indices, Sensex and Nifty ended higher Wednesday led across the board gains after the RBI kept policy rates unchanged but committed to a massive government bond purchase programme.
Sensex rose 460.37 points or 0.94% to close at 49,661.76, while Nifty was up 135.50 points or 0.92% to end at 14,819.
Broader markets supported the rally with midcap and smallcap indices ending over 1% higher each. The gains were led by banks, auto, IT and metal indices.
JSW Steel, Wipro, Britannia Industries, SBI Life Insurance and SBI were among top gainers on the Nifty, while losers included Adani Ports, Tata Consumer Products, UPL, NTPC and Titan Company.
Experts were of the view that RBI’s decision to maintain its high GDP growth forecast helped the market to calm down its fears which had increased post the second wave of infection and stringent lockdowns.
India VIX, the volatility gauge, slipped 3%, nearing 20 just ahead of the closing bell
After a weak debut, shares of Barbeque Nation Hospitality jumped 20% to hit the upper circuit at Rs 590 per share.
Here’s what experts say investors should do on Thursday
Rohit Singre, Senior Technical Analyst at LKP Securities
Nifty index closed a day at 14,819 with gains of nearly one percent and formed a bullish candle on the daily chart. Again 14,900 acted as the strong hurdle in Wednesday’s session so until we don’t see a decisive breakout above 14,900 upsides will be capped and once we see a breakout above 14,900 then we may see a good short-covering move which can push the index towards the 15,000-15,100 zone quickly, immediate support is still placed at 14,700-14,600 zone.
Manish Shah, Founder, Niftytriggers.com
Nifty closed the day positive but Nifty continues to trade below the resistance at 14,900. The market breadth saw a great improvement as after a long time we see a ratio of 4:1 on advances to declines. A long green candle closing at the highs of the day suggests that buying interest in emerging back.
The volatility in the index has already declined in the last 3-4 weeks. Nifty has not participated in the ongoing rally in most other equity markets in the world and sooner or later Nifty will piggyback other equity markets.
Nifty needs to break above the resistance at 14900 and once this happens we should see a rally towards 15,300 and beyond that to 15,450. Nifty faces resistance also due to both the moving averages; the 20 SMA and 50 SMA are very close to each other. There averages are acting as a barrier to Nifty.
The stage is set for a rally above 14,900. A break above 14900 and the coil will get unwound and one can expect a swift move.
All sectoral indices on the NSE were sitting with gains ahead of the closing bell. Nifty PSU Bank index was the top gainer up 1.97%, followed by the Nifty Private Bank, Nifty Auto, and Bank Nifty.