range bound movement of the market is likely to be broken with an upward move soon, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Positive Asian cues lifted the key indices of the Indian equity market during Monday’s morning trade session. Besides, higher crude oils and commodity prices provided additional support to the upward trajectory. Sector-wise, realty, auto, and bank stocks gained the most whereas power and IT scrips lost the most.
At around 10.30 a.m., S&P BSE Sensex traded at 60,142.17 points, higher by 93.70 points or 0.16 percent from its previous close. Similarly, NSE Nifty50 edged higher. It rose to 17,867.70 points, higher by 14.50 points or 0.081 percent from its previous close.
Given the significant rally over the past one month, experts suggest that investors book timely profits and avoid aggressive buying. According to them, the next resistance on the Nifty 50 is expected at 18,000, with support at 17,600.
“At higher levels, another bout of profit-taking has emerged,” said Deepak Jasani, Head of Retail Research, HDFC Securities. “However one more attempt to rise towards 18,000 Nifty seems due either today or in the next 1-2 days.”
According to Gaurav Garg, Head of Research, CapitalVia Global Research: “Indian benchmark indices started on a positive note on Monday. Asian shares got off on positive start despite the jump in oil prices to three years high.”
“Our research suggests that 17,790 is an important level in the market. If the market sustains above 17,790, we can expect the market to trade to the level of 18,000-18,100. If the index slips by this point, it will push itself into some consolidation.”
“Our markets had a remarkable comeback in the last four sessions as we not only managed to recover from lows but also went on to clock fresh highs,” said Sameet Chavan, chief analyst – technical and derivatives, at Angel Broking. “We have clearly outperformed global peers because, despite a relief move in last two days, they are still trading well below their highs.”
He said the recovery beyond 17,600 was certainly surprising but the market was superior.
“Ideally, after the market surpassed previous highs, our cautious stance should have been negated, but there are a few time-wise projections as well as negative divergence in the Relative Strength Index (RSI)-smoothened oscillator, clearly holding us back,” he said.