Markets recover sharply giving hopes of another leg up; here's what investors should do on Tuesday
Mid and small-caps outperformed their larger peers. The BSE midcap index closed 0.82% higher, while the smallcap index finished with a gain of 0.83%
Domestic equity benchmarks saw a gap down opening on Monday. However Sensex and Nifty recovered sharply in the second half to recoup all the losses . Strong buying interest in PSU banks and financial stocks led the recovery in the afternoon session.
The Sensex ended 230 points, or 0.44%, higher at 52,574%, while the Nifty settled with a gain of 63 points, or 0.40%, at 15,746.50.
Mid and small-caps outperformed their larger peers. The BSE midcap index closed 0.82% higher, while the smallcap index finished with a gain of 0.83%.
Barring Nifty IT and Nifty Auto, all other sectoral indices closed in the green.
On the Nifty50 index, Adani Ports, NTPC, Titan Company, SBI and Bajaj Finserv were the top gainers while UPL, Wipro, Tata Motors, Maruti Suzuki and Tech Mahindra led the losses.
The overall market-capitalisation of BSE-listed firms rose to Rs 228 lakh crore on June 21 against Rs 227 lakh crore in the previous session on June 18, making investors richer by around Rs 1.6 lakh crore in a day.
Analysts believe the index may attempt to revisit its previous high around 15,900 levels.
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
The market once again strongly resisted going below 15,500/51,700. With 15,500/51,700 levels holding support for the second day in a row, the market saw a strong short-covering trend today. After Friday’s indication, the market has formed a bullish continuation formation today and according to that 15,800/52,800 will be a big hurdle. However, if indices manage to close above 15,800/52,800, it could reach 16,000/16,050 (53,400/53,500). On Tuesday, 15,800/52,800 and 15,650/52,400 could be the trading range of the market. The Bank-Nifty moved from 33,900 to close at 34,900, which is remarkable and looks appropriate considering the yield of the bond.
Manish Shah, Founder, www.Niftytriggers.com
Nifty saw a reversal of sorts opening at the low of the day at 15,505 and closing at the high of the day. Pattern formed highlights the predicting power of right candlestick pattern at the right location and in the right context. Nifty continues to attract buyers on declines. Expect the up move to continue for some time. Simple price action now points out at Nifty rallying towards 15,900 before the expiry and above that to 16,200.
Ajit Mishra, VP – Research, Religare Broking
Markets started the week on a choppy note but finally ended nearly half a percent higher. We’re seeing consolidation in the index on the expected lines however the buying interest on every dip clearly shows the market mood. We reiterate our advice to utilise intermediate correction to go long in quality counters until we see some sign of trend reversal. Having said that, it’s not easy to identify performers at the record high and the risk of false breakout is also there. We thus recommend limiting the naked leveraged bets and maintaining strict risk management rules.