Sensex, Nifty end with gains for second day straight; is 16,000 in touching distance now?

Stock markets ended in the green on Monday.

Sensex and Nifty climbed higher on Monday as bulls asserted control on Dalal Street. Marking the second straight day of gains, S&P BSE Sensex rose 395 points to close at 52,880 while the NSE Nifty 50 gained 112 points to finish the day’s trade at 15,834. State Bank of India gained 2.16% to end as the top index gainer, followed by Tata Steel, Bajaj Finserv, and Larsen & Toubro. Tech Mahindra, Dr Reddy’s, HCL Technologies, Titan, and Bharti Airtel were the only Sensex constituents to close in Red. Broader markets mirrored the up-move. Among sectoral indices, only Nifty IT and Nifty Pharma closed in the red. Bank Nifty soared 1.16%. India VIX ended in the red.

Nagaraj Shetti, Technical Research  Analyst, HDFC Securities –

“The upmove of Monday seems to have confirmed the bullish reversal of Friday and one may expect upmove towards 15900 levels or higher in the next 1-2 sessions. The upside area of 15900-16100 is going to be crucial to sustain for the short term. Any lack of strength to sustain the highs is likely to result in another downward correction from the highs. Immediate support is placed at 15740.”

Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities-

“The Nifty-50 opened up with a gap of 55 points and finally closed with gains of 112 points. Market breadth was strong but market volume was low. Nifty rallied to 15845, which is an upper boundary for the market. However, till the Nifty crosses 15920 levels, the strong buyers would not enter the market. For Tuesday, initially, the level of 15900/15920 would act as major resistance and support would be 15740. The strategy should be to buy on dips around 15760/15710 levels or if the market is closing above the levels of 15930.”

Rohit Singre, Senior Technical Analyst at LKP Securities-

“Index opened a day with a good gap and maintained its bullish streak for a second consecutive session with a close at 15834 with gains of 112 points & formed a bullish candle. For fresh move above recent swing highs index need to give a decisive close above 15900 zone then only we may see a fresh up move towards 16000-16100 zone so immediate hurdle zone is 15900, good supports are shifted to 15790-15700 zone holding above said levels structure seems positive and dips can be used as buying opportunity.”

Vinod Nair, Head of Research at Geojit Financial Services-

“Domestic indices witnessed a gap-up opening and maintained the levels despite mixed sentiments seen in global equities. In line with contraction in manufacturing PMI, India’s Service PMI for June fell to 41.2 against 46.4 in May, having no negative impression on the market. A strong US job data signalled that the economy is recovering at a steady pace which eased concerns over an earlier-than-expected interest rate hike by the Fed. The overall optimism boosted appetite for most sectors barring IT and Pharma, while small and mid-cap stocks continued their outperformance.”

Manish Shah, Founder, Niftytriggers –

“For the last four weeks Nifty has been in a trading range of 15900-15650 and this the narrowest one month range we are seeing in almost a year. The contraction on volatility cannot remain at such low levels for a very long time. Ultimately volatility also reverts to the mean. Nifty closed above its flattening moving average and this a positive development. Nifty faces a major barrier at 15900-15950 and this barrier needs to be taken out. Nifty needs to close above 15900-15950 preferably with a long-range candle to move to higher levels.  Once this happens a possible rally to 16200 is likely. Let us brace for an upside in double-quick time.”