Back home, decline in daily Covid-19 cases and India Inc's performance in the September quarter also helped firm up investor sentiment. Aggressive cost-cutting and sharp declines in commodity and energy prices helped India Inc post record operating margins in the second quarter of financial year 2020-21 (Q2FY21), despite falling sales and revenues, because of the pandemic. READ MORE
Here's how the key indices look on the techncial charts.
S&P BSE SENSEX:
The index is witnessing a clear breakout and a firm uptrend after conquering the selling pressure in the range of 41,300 to 41,000 levels, as per the weekly chart. Now at a current record high of around 42,500, the S&P BSE Sensex is set to march towards 45,000 levels. This may not be easy, but the intensity is strong and the sentiment is showing robust positivity. Going forward, till the index defends 41,000 mark on a weekly closing basis, the uptrend should prevail. The Relative Strength Index (RSI) has crossed the resistance of 63.50 value decisively, which indicates strength that is pushing the index to uncharted territory. CLICK HERE FOR THE CHART
For quite some time, a Golden Cross of 50-day moving average (DMA), 100-DMA with 200-DMA had indicated the up move being witnessed by the Nifty50 index. This trend is witnessing aggressive buying momentum now, with follow-up volumes scaling gradually. Until the index holds the 12,000 mark with a scenario wherein follow-up buying continues, one can expect a rally over the 13,000 mark in the short term. The Moving Average Convergence Divergence (MACD) has not breached the zero line downward in the recent corrective move. And now with a positive crossover, the direction and momentum seem fairly in the hands of bulls. CLICK HERE FOR THE CHART
With a move above 27,000 mark, this index has not only conquered the 200-weekly moving average (WMA), but has also crossed the 100-WMA. This essentially proves that the strong upward sentiment wants to capitalize on the breakout. As long as Nifty bank holds 100-WMA placed at 26,744 levels, the upside bias is going to witness aggressive upward momentum. This is in regards to the MACD crossing the zero line successfully, as per the weekly chart. Overall, the structure looks highly promising with the price heading towards 30,000 mark in the short run. CLICK HERE FOR THE CHART