364459 SIP myths you must know!
At close, the Sensex was up 848 points or 1.74% at 49580, and the Nifty was up 245 points or 1.67% at 14,923
A sharp drop in Covid-19 cases lifted investors’ sentiments and markets began the week with robust gains. Positive global cues and better corporate earnings also supported the momentum in markets today. Benchmark indices rallied throughout the day and closed at the highest point of the day making investors richer by about Rs 3 lakh crore.
At close, the Sensex was up 848 points or 1.74% at 49580, and the Nifty was up 245 points or 1.67% at 14,923. Nifty bank gained 1000 points over its previous closing and closed 4% higher to record biggest single-day gain since budget day.
Broader markets too supported the rally as the S&P BSE MidCap and SmallCap indices ended 1.6% higher each.
Among other sectors, Nifty Energy, Bank, Auto, Metal and PSU Bank indices rose 1-4%. India VIX, the volatility gauge closed in the red, falling 3.25% during the day.
IndusInd Bank, SBI, ICICI Bank, HDFC Bank and UPL were among the top gainers on the Nifty. Losers included Cipla, Bharti Airtel, Larsen and Toubro, SBI Life Insurance and Nestle India.
As a worrying point, the wholesale price index (WPI) registered a major upside surprise, surging to 10.5% y-0-y in April. Perishable food products -vegetables, minerals and basic metals drove the inflation surge. This is the first time the WPI has been in double digits in almost a decade.
While base effects remain unfavourable, a pick up in sequential momentum added to the price pressures in April.
Here’s how experts see markets trading on Tuesday
Manish Shah, Founder, Niftytriggers.com
On Monday, Nifty closed the day sharply higher with the index rising by close to 1.68 percent in a day. It was a wide-ranged candle that closed at the top end of the day’s trading range. It is a range expansion candle with its true range highest in the last couple of weeks. Bulls showed massive strength for the day. This pattern appears below the resistance at 15,050-15,100 points.
Nifty still needs to close above the resistance at 15,050-15,100. The crucial piece of evidence need is a high conviction close above 15,050-15,100. Once this happens we can brace for a rally to the prior swing high at 15,430-15,450. A breakout should signal a sharp rally over the next couple of weeks.
Shrikant Chouhan, EVP, Equity Technical Research, Kotak Securities