At 9:15 IST, the S&P BSE Sensex was up 0.51% to 75,124.28, while the NSE Nifty 50 was up 0.44% to 22,765.10.
Gains in information technology, real estate and financial sectors lifted indexes, while positive corporate business reports further lifted market sentiment ahead of earnings season.
The pattern of “higher highs and higher lows” is a clear positive indicator, according to Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, and it has been the most notable pattern in the Indian market this year.
Therefore, investors have often found success with the buy on dips approach. The new market highs reached yesterday support the overall positive sentiment in the market. The outperformance of the large caps in yesterday’s market action was a positive and healthy trend. This trend is likely to continue, Vijayakumar added.
The Sensex and the Nifty 50 ended Monday’s trading session higher on upbeat global cues, falling crude oil prices, and a rebound in heavyweight Reliance Industries and auto stocks on expectations of robust quarterly profits.
The 30-share BSE Sensex hit a new closing high of 74,742.50 after rising 494.28 points, or 0.67%. It rose 621.08 points, or 0.83%, during the day to hit 74,869.30, the record intraday high.
The NSE Nifty 50 came to 22,666.30, up 152.60 points, or 0.68%. It rose 183.6 points, or 0.81%, during the day to reach a lifetime high of 22,697.30.
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Market Review and Outlook – Ruchit Jain
The Nifty 50 started the week on a positive note and registered a new high, indicating a continuation of the upward trend. Nifty 50 ended the day at 22,666 with gains of seven-tenths of a percent, led by heavyweights like Reliance, L&T, and some private banking and auto stocks, said Ruchit Jain, Principal Research Analyst at 5paisa.
The Nifty 50 continues its ‘Higher Top, Higher Bottom’ formation, led by some index heavyweights and also supported by broader market participation. The index is trading at its all-time high, and usually retracements of previous corrections give us a fair idea of the next likely targets or resistances. According to this theory, the initial retracement will be seen in the range of 22,750-22,850, and therefore this would be the crucial range to watch out for. If the index manages to break this zone, then one can expect 23,000 on the Nifty 50, which is around the 161.8 percent level, explained Jain.
On the upside, 22,500 and 22,360 will be seen as immediate supports on any pullback moves. As there are no reversal signs yet, we continue with our advice to trade with a positive bias and look for buying opportunities, advised Ruchit.
Stocks in focus today – Ruchit Jain
On stocks to buy today, Ruchit Jain recommends two stocks – Larsen & Toubro Ltd and ICICI Prudential Life Insurance Company Ltd.
Larsen & Toubro Ltd (L&T)
Ruchit stated that this index heavyweight has recently given a breakout of a Cup and Handle pattern on the daily chart, which is a bullish pattern. The prices witnessed some pullback moves in the last week but there were no volumes seen on price corrections while the volumes were high along with the prices. The RSI oscillator suggests positive momentum, and therefore we expect the upward trend to continue. Traders can look for buying opportunities in the stock in the range of ₹3,800–3,770 for potential targets of ₹4,000 and 4,100. The stoploss on long positions should be placed below ₹3,650.
ICICI Prudential Life Insurance Company Ltd
Jain explained that the stock recently formed a “Higher Top, Higher Bottom” formation and gave a breakout of a “Reverse Head and Shoulders” pattern on the weekly charts. The RSI oscillator is positive, and the price-volume action indicates a continuation of the uptrend. Traders can buy the shares in the range of ₹630–625 for possible purpose of ₹590–600. The stoploss on long positions should be placed below ₹592.
Disclaimer: The above views and recommendations are those of individual analysts, experts and trading companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 09 Apr 2024, 10:02 IST