The market gained for the third straight day on positive domestic cues and a surge in global markets helping the Sensex and Nifty end higher.
The Sensex ended 147 points higher at 37,641 while Nifty settled 47 points or 0.43 per cent higher at 11,105. The gains were driven banking, auto and energy stocks.
The market breath was also strong with BSE midcap and smallcap indices rising 0.53 per cent and 1.6 per cent respectively.
Among the Sensex stocks, Tata Motors surged 9 per cent while Tata Steel, NTPC, IndusInd Bank, Vedanta and M&M gained between 2 per cent and 4 per cent. Frontline IT stocks were under pressure, with Infosys, Tech Mahindra and TCS declining between 1.5 per cent and 2.5 per cent.
According to experts, technically, a formation of doji pattern at the crucial overhead resistance, post reasonable upmove could be an impending warning signal for bulls of trend reversal. Hence, one may expect a profit booking from the highs in the next 1-2 sessions. “Immediate supports to be watched at 11050 levels. A renewed buying enthusiasm could occur only on a decisive/ sustainable move above 11150-180 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
The market was higher due to supportive global and domestic cues. MSCI rebalancing also increa-sed volatility. “For next one or two days, 11000 and 11200 would be the trading range, based on options data,” said Shrikant Chou-han, Head Technical Res-earch, Kotak Securities.
“We are of the opinion that the short term corrective phase is behind us and hence, instead of selling near the resistance, traders should now approach a ‘Buy on dip’ strategy and find buying opportunities on any declines. As far as support is concerned, 11050 and 10930 are seen as the immediate support levels. A stock specific approach is providing better trading opportunities and hence, traders are advised to focus on the same,” Ruchit Jain Equity Technical Analyst, Angel Broking.
“Going forward, the market participants would keep a close watch on currency movement and upcoming Q1FY20 GDP data. Globally, trade tensions between US-China is likely to induce volatility into the Indian markets,” Ajit Mishra, Vice President, Research, Reli-gare Broking.