Analyst Somesh view - Closing Comments March 30

2021-03-30 19:42:12 By Marepally Krishna


Nifty, after a Doji formation on 26th March 2021, formed a healthy bullish candle on the daily chart on 30th March 21 as the closing was higher than opening level.


After opening higher at 14628, Nifty remained strong throughout the session and hit the day's high of 14876 before signing off at 14845, up 337 points or 2.3 percent.


Nifty had yet another strong session registering 2 percent gains, backed by positive global sentiment after the news that US President Joe Biden is likely to announce $3-trillion infrastructure package. Sensex went past the 50000 mark as all sectors participated in the bull run.


Markets opened firm on strong global cues with Joe Biden slated to announce his USD 3 trillion infra package. Investors shrugged off the rising corona virus cases in few states as the GOI prepares for a vaccine rollout on a larger scale. Steel & IT stocks led the bull charge while FMCG stocks joined the party in late afternoon trade as the Sensex scaled past 50k.


Markets have extended their recovery for a second session, boosted by strength across the board. Global cues have been supportive of the rally since Friday, with both US and European markets advancing to life-time highs. Contributing the most to today's advance were stocks from the metal, IT, and pharma space. Meanwhile, the broader markets have under-performed the large-caps so far, with Midcap and Smallcap index up just a little over 0.7%.


It’s surprising the way the benchmark is showing resilience amid mixed cues. Going ahead, upcoming data viz. Core Sector and auto sales along with global cues will remain on the participants’ radar. Needless to say, the recent deterioration of the COVID situation in India has dented sentiment and will be closely watched by the participants in the coming sessions too.


Albeit strong upmove on Nifty seems to have kicked in a fresh leg of upswing from the recent lows of 14264, as the index almost retraced last leg of losses from the highs of 14878 to 14264 in just two trading sessions, the larger trend still appears to be sideways.


In the next trading session, if the index sustains above its interim top of 14878, then the upswing will ideally extend towards its logical target of 15100. Unless the index registers a sustainable close above 15336, new sustainable life highs should not be expected.


Bulls need to defend the day's bullish gap zone present between 14617&14572 and if the Nifty closes below 14570, then the current bullish optimism will fade away.


Traders should focus on stock specific opportunities, Those with a high-risk appetite can consider long positions if the index sustains above 14900 for more than 30 minutes for a modest target of 15051 with a stop below intraday low.


On the sectoral front, Nifty IT, FMCG, metal and Pharma indices rose 2-3 percent. Midcap and Smallcap indices added a percent each.

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