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Stock Markets Soar In Third Consecutive Day Of Gains, Surpassing Key Resistance Levels

09:58 AM Feb 16, 2024 IST | 8PM News Desk
stock markets soar in third consecutive day of gains  surpassing key resistance levels
Stock Markets Soar In Third Consecutive Day Of Gains, Surpassing Key Resistance Levels

Mumbai (Maharashtra) [India] : In a continuation of the positive momentum witnessed in the previous trading sessions, the equity indices initiated the trading day on a high note. This marks the third consecutive day of gains, with optimism fueled by positive global market indicators.

The Gift Nifty signals further supported the expectations for a robust opening of the benchmark indices.

As the trading day commenced, the Sensex demonstrated a notable surge of 249.91 points, opening at 72,300.30. Simultaneously, the Nifty exhibited a strong performance, opening 83.95 points up at 21,994.70.

Among the Nifty companies, 43 registered advances, while 7 faced declines. Leading the pack of gainers among Nifty companies were BPCL, Tata Motors, Infosys, Bajaj Auto, and M&M.

On the flip side, Power Grid, Apollo Hospitals, Axis Bank, HCL Technologies, and Sun Pharma were among the top losers.

Varun Aggarwal, founder and managing director, Profit Idea said, "Technical analysis shed light on Nifty forming a small body candlestick pattern with a minor upper shadow and a long lower shadow, resembling a doji candle".

He added, "While such patterns typically signal potential trend reversals, their significance following a single day of upward movement remains limited. Nifty currently hovers around the minor downtrend line resistance at 21,900 - 21,950 levels".

A decisive breach above this barrier could pave the way for fresh all-time highs around 22,150 levels.

On February 15, Nifty 50 extended its upward momentum, surging by 70 points and closing above the key resistance level of 21,850.

Analysis of the daily chart indicates a breakout from consolidation, reflecting a positive shift in market sentiment.

The index has consistently closed above its 20-day moving average for three consecutive sessions, with the Relative Strength Index (RSI) signalling a bullish crossover. In the near term, there exists potential for the index to advance towards the 22,200 mark.

In the broader Asian equities landscape, stocks rallied on Thursday following a resurgence in Wall Street driven by robust corporate earnings, alleviating concerns surrounding inflation.

Aggarwal said, "Taiwan's benchmark index attained an intraday record high, while Japan's blue-chip index reached a three-year pinnacle relative to its broader counterpart. South Korean shares mirrored the overnight gains in Wall Street".

Turning to the US market, futures remained steady in Asia after the S&P 500 breached the 5,000 level with a 1 per cent increase on Wednesday.

Treasury yields experienced minimal fluctuations following a modest rally, with the dollar index showing slight weakness.

Brent crude traded marginally below USD 83 a barrel, while West Texas Intermediate hovered around USD 78, nearing its highest close since mid-November.  The overall positive market sentiment globally sets a favourable tone for continued momentum in the Indian stock market.

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