Benchmark Indices closed on a positive note with Sensex up 0.56 percent and Nifty 50 rose 0.73 percent. Strong buying interest was seen in auto, IT and metal sector with Nifty IT up 1.83 percent, Nifty Auto 1.78 percent and Nifty Metal closing up 2.51 percent today. Coforge share jumped 17.4 percent to hit a new 52-week high on robust 4Q numbers. Selling pressure was seen in some of the Pharma and PSU bank stocks.
#MarketAtClose | Market recovers from opening lows to close near day’s high
Sensex gains 336 points & Nifty 113 points from lows
financials relatively underperform with Nifty Bank closing flat pic.twitter.com/pr8QTQNwXr
— CNBC-TV18 (@CNBCTV18Live) May 6, 2021
The markets have well sustained above 14,500 levels in Nifty 50 and overcome the resistance level of 14,700 on Thursday which has opened the gates for 14,850 and 15,000 levels now in Nifty 50. Hindalco, Hero Motocorp, Wipro were the top gainers while Power Grid Corp, UPL, Bajaj Finserv were the top losers in Nifty 50.
Domestic bourses closed with a positive bias on weekly F&O expiry session as strong gain in auto, metal and IT stocks supported Nifty ending 0.7 percent higher. RBI’s supportive moves further lifted sentiments and investors shrugged off the fear over the pandemic situation.
Sumeet Bagadia, Executive Director, Choice Broking, said on the technical front, the index has confirmed the Bullish Harami Candlestick Pattern, which suggests bullishness in the counter. Moreover, the Index has given closing above the 21-Daily Moving Average, which points out strength in the counter. An oscillator Stochastic has indicated positive crossover, which supports the bullish trend for the near-term. At present, the Nifty index is holding support at 14,500 levels while an upside resistance seems at 14,860 levels.
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities said on the day of the weekly expiry of index options, Nifty/Sensex closed at the highest point of the day on Thursday.
Since the last few weeks, the market is finding it tough to sustain at higher levels due to the pressure of the weekend news flow. “We need to be careful to add long positions at higher levels. On the downside, 14,600/48,600 and 14,500/48,300 would be major supports. The Bank Nifty is consolidating and in the medium term a close above the levels of 33000. The focus should be on commodities, consumer durables and pharmaceutical stocks,” Chouhan added.
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