Indian Stock Markets Recover After Volatile Trading Session

The Indian stock markets experienced a highly volatile session on Monday, with the benchmark Sensex sliding over 1,000 points before recovering and ending the day with a gain. The Nifty index recovered in the early session and continued its upside move throughout the day, settling at 16,793.90 with 0.81 percent gains. The Bank Nifty, however, witnessed a negative move, closing at 36,205.30 levels with 0.6 percent losses. Various sectoral indices, including Nifty Metal, Nifty Energy, and Nifty Infra, contributed to the gains, while the Bank and Auto indices were in the red.

Key Takeaways:

• The benchmark Sensex recovered from a negative opening, eventually ending the day with a gain of 388.76 points or 0.70 percent at 56,247.28.
• The Nifty index settled at 16,793.90 with 0.81 percent gains, with the index forming a long green candle and sustaining above the Lower Bollinger Band formation.
• The Nifty has immediate support around 16,650/16,500 levels, while the resistance is around 17,000 levels.
• A momentum indicator RSI has pulled up from the oversold zone & Stochastic witnessed a positive crossover, indicating short-covering for the near term.
• Bank Nifty has support at 35,500 levels and resistance at 36,800 levels.
• Strong buying was seen in metals, oil, and gas stocks, while some pressure was witnessed in auto stocks.
• Hindalco and Tata Steel were the top gainers in Nifty 50, while HDFC Life and Dr Reddys were the top losers in Nifty 50 today.

Statistics:

• 2,071 shares advanced, 1,290 shares declined, and 142 shares remained unchanged.
• The BSE midcap and smallcap indices were up 0.8 percent each.
• The Nifty 50 index has a long bullish candle, which is broadly positive.
• The market is hovering between 16,500-16,750 price ranges.

Sources:

• Sachin Gupta, AVP, Research, Choice Broking
• Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd
• Mohit Nigam, Head - PMS, Hem Securities