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Pharma, bank stocks help D-Street rally today; watch out for these levels ahead of weekly expiry

Pharma stocks were also among the top gainers after RBI Governor Shaktikanta Das announced a special liquidity facility for the sector.
(Image: REUTERS)

Benchmark indices closed with gains on Wednesday, snapping their two-day losing streak. S&P BSE Sensex managed to end at 48,677 while the 50-stock NSE nifty closed at 14,617. Index heavyweights such as ICICI Bank, HDFC Bank, and Kotak Mahindra Bank gained and pulled Dalal Street higher. Pharma stocks were also among the top gainers after RBI Governor Shaktikanta Das announced a special liquidity facility for the sector. Volatility continued to inch lower throughout the day and on the closing bell, India VIX was just below 22 levels. Broader markets outperformed benchmark indices.

Deepak Jasani, Head of Retail Research, HDFC Securities –

India benchmark equity indices rose on May 05 after the RBI announced measures to further support the economy as coronavirus cases continue to surge. Volumes on the NSE were in line with recent averages. Among sectors, Healthcare, Banks and Metals were the main gainers while Realty was the loser. Nifty formed an inside day on May 05, meaning that the high low range for the day was within the high low range of the previous day. However the Nifty closed near its intraday high. Advance decline ratio too became positive.  14,461-14,723 continues to be the range for the Nifty in the near term. In case we do not see a negative day tomorrow, then we may have seen a near term bottom at 14,416 on May 03. 

Manish Shah, Founder, Niftytriggers –

“Nifty is toggling in a range of 15,050- 14,250 for several weeks with breakout, not insight. The basing is taking a long period in terms of time. The Rule is that the longer the time taken in a base the faster and longer will the result. Nifty has to clear 15,050 with a strong conviction candle for a sustained move on the upside. As a short term 2-3 day move. If Nifty breaks above 14,670 expect a rally to 14,830-14,850 and above that to 15,000 over the next 2-3 days. Tomorrow is the Weekly expiry a break above 14,670 could mean a nice play on the long side for weekly expiry players. Major support is at 14,480-14,450. A break below this and we could see a drop to 14,350.”

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments –

“The range continues; the Nifty is unable to get past 14,700 or break 14,400. If we can close past 147,00, we will move to 15,100 levels and if we break 14,400, we will see the markets drift to 14,000-14,100. The positive of the current range is that a large move is in the offing where traders can find an appropriate opportunity to make money.”

Vinod Nair, Head of Research at Geojit financial services

“Domestic market edged up boosted by pharma and financial stocks following RBI Governor’s announcement and positive global markets. While reassuring RBI’s policy aid, the Governor announced an array of support to the Covid-hit sectors through restructuring schemes and liquidity measures. India’s Service PMI index reported a marginal decline in April to 54.0 from 54.6 in March 2021 owing to slow-down in external demand and escalation of the pandemic, but is expected to improve on a QoQ basis from Q2FY21 onwards.”

S Ranganathan, Head of Research at LKP securities

“RBI sops and MSCI rebalancing next week propelled Indices higher by a percentage led by Pharma with good support from Banks. The broader market witnessed keen interest in Shipping stocks and select PSU stocks.”

Mohit Nigam, Head, PMS, Hem Securities –

“Benchmark indices extended the gains after RBI announcements which were directed mostly towards covid impacted sectors, ample liquidity & softening of yields. Sensex closed up 0.88% and Nifty 50 ended up 0.84% from yesterday’s closing. Markets have held the support level of 14,500 in Nifty 50. Trading above this level is positive and could lead to 14,800-15,000 zone in the near term. Strong buying interest is seen across IT, Pharma and Financial sectors. Comments from Yellen about rising yields have made US markets slightly volatile which can impact the Indian market in the next 1-2 trading sessions. Good corporate results so far and a possible reduction in Covid cases in next few days will provide support to the markets.”

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