Home > Markets > Stock Markets > Sensex extends rebound to 3rd day. What market watchers say
Sensex closed up 0.37% at 30,932
Sensex closed up 0.37% at 30,932

Sensex extends rebound to 3rd day. What market watchers say

  • With its third straight gain, the Sensex has recouped some of the sharp losses in recent sessions triggered by disappointment over India's economic relief measures

Indian markets extended their rebound today, ending higher for the third day in a row as government eased curbs on air and rail travel, in a further relaxation of a weeks-long coronavirus lockdown that has battered the economy. The NSE Nifty 50 index ended 0.44% higher at 9,106.25, while the S&P BSE Sensex closed up 0.37% at 30,932.90, though both the indices ended off their day's highs.

With its third straight gain, the Nifty recouped some of the sharp losses in recent sessions triggered by disappointment over India's economic relief measures. Mortgage lender HDFC Ltd was the top drag on the Nifty 50, falling 1.8% while tobacco and consumer products giant ITC Ltd surged 7.5%. Interglobe Aviation Ltd, which runs India's largest airline IndiGo, jumped 7.3%, while second-biggest carrier SpiceJet climbed 4.9%.

Here is what experts say about today's market action:

Ajit Mishra, VP - Research, Religare Broking Ltd.

"Though the government has allowed resuming certain economic activities in the fourth phase of the lockdown, it would take time to boost the sentiment at the ground. Needless to say, people are aware of the rising COVID-19 cases in India and if it continues to show the same trend, it would be difficult for the government to further ease the lockdown conditions which might again derail the possibility of sustained recovery. Amid all, we believe volatility will continue in the markets and the underperformance from the banking and financial space would remain the major overhang. In the present scenario, participants should limit their naked leveraged positions and focus more on stock selection."

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

“The market witnessed volatile trading session on account of weekly expiry. The Nifty registered strong intraday rally from 9057 to 9178 but due to weekly expiry pressure and consistence selling pressure in banking stocks it failed to sustain above 9150. The global market cues too were not much encouraging, and they witnessed tepid action throughout the day. We are of the view that the market will remain volatile in short run. Technically, for the next few trading sessions, 9025 should act as a trend decider level, above which we can expect uptrend continuation wave up to 9150-9250 levels. However, trading below 9025 could possibly open another correction till 8880."

Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking)

“Technically speaking, we are standing at a crucial juncture now and hence, the coming session would probably set the next path of action for our markets. As far as levels are concerned, 9150-9200 remains to be an important hurdle for Nifty. Tomorrow being the weekly close, it would be crucial to see whether we manage to surpass this hurdle or not. Any sustainable move beyond this would certainly trigger a strong upside move in the market; whereas on the flipside, 9000 becomes a make or break level now.

Today, despite we were witnessing some volatile swings in indices, individual pockets were doing well for themselves. Hence, till the time, we are stuck in a range of 9000-9200, its advisable to focus on potential movers."

(With Agency Inputs)

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