The Indian market made a great recovery in the previous session, backed by positive global cues. The 30 stock Sensex ended up with 1,534. Nifty moved 456.75 points to 16,266. All Sensex stocks ended up in the green.
Reddy's Labs, Reliance Industries, Tata Steel, Nestle, Larsen Toubro, Axis Bank, IndusInd Bank, Sun Pharma, State Bank of India, and HDFC were the top Sensex gainers, up to 8.10 per cent.
Friday s rally helped Sensex and Nifty snap their five-week losing streak with a gain of around 3 per cent.
The benchmark indices are still in the red in 2022, led by negative global cues. The Sensex has lost 6.74 per cent or 3927 points, while the Nifty is down 6.27 per cent or 1087 points.
On a yearly basis, Sensex has gained 9.61 per cent or 4761 points and Nifty has gained 9.12 per cent or 1360 points.
Domestic indices are likely to reduce their losses in the near term due to global markets turning positive. Here is a look at what analysts think about the direction Sensex and Nifty are likely to take in the upcoming sessions.
The daily timeframe of the Nifty shows the index has made a double bottom around the 15735 levels, said Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities. A move above the recent swing high of 16400 could lead to further upsides in the coming week. While we remain open to further pullback rallies in the near term, we must remember that the intermediate trend is down. The bears would gain more control once the recent intermediate low of 15735 was broken. Enjoy the rally until it lasts. Shrikant Chouhan, Head of Equity Research Retail Kotak Securities said Markets were wary of global growth-inflation expectations. With the result-season coming to an end, the focus will be more on the macro data points. Market sentiments will be affected by the tightening of central banks' action in the wake of high inflation. Ajit Mishra, Religare Broking said, "We expect choppiness to remain high due to the scheduled monthly expiry." The monsoon updates will also be in focus. In line with the trend, global factors like performance of global markets, including the US, China's COVID update and Russia-Ukraine news, will remain on the participants radar. Markets are trading closer to the upper band, and have been witnessing wild swings within the 15,700 -- 16,400 range. Participants should wait for a decisive close above 16,400 to change the bias. In case of a breakout, the 16,650 -- 16,800 zone acts as a hurdle. Among the sectoral indexes, defensive stocks like FMCG and pharma look poised to surge further while others may continue to trade mix. Traders should keep their positions on both sides and align their positions accordingly.