Indian Markets rallied on Tuesday led by interest rate sensitives - Nirmal Bang

Indian markets rallied further on Tuesday led by interest rate sensitives on expectations the central bank will reduce lending rates in its annual monetary policy on May 3. The market participants are factoring in 25 bps repo cut on May following an unexpected fall in inflation for March below 6% for first time in 40-months.

At the close, the benchmark 30-share index, BSE Sensex added 387.13 points or 2.11% at 18,744.93 with 26 components posting rise. While the broad based NSE Nifty closed higher with a gain of 120.55 points or 2.16%, at 5,688.95 components posting rise.

Nifty has managed to sustain & close above the 5,650-5,670 levels which will act as a make or break level for the market in the near future. The index has strong support at 5,630-5600 levels on the downside and there is an immediate resistance at 5,730-5,750 levels on the upside and on a close above expect rise to 5,800 & 5,840 levels.

Action: Nifty has an immediate resistance at 5,730 and support at 5,630 levels on the downside.

Bank Nifty has managed to sustain & close above the 11850 levels. Bank nifty faces immediate resistance around the 11980 levels on the upside and on a decisive close above expect rise to 12240 & 12,500 levels. There is an Immediate Support at 11,630 levels on the downside.

Source : Equity Bulls

Keywords