Extending gains for the second day, the Indian market surged more than one and half per cent amid positive global cues in Tuesday intraday trade. After falling for six straight days, the market has made some recovery on Monday as it closed with around half per cent gains.
Benchmarks gained 1.7% each in late morning trade on Tuesday as the broader Nifty50 surged past 15,600 and the 30-share Sensex added nearly 900 points to trade around 52,500.
The market has witnessed a bounce back due to positive sentiment in the global equity markets, said Santosh Meena, Head of Research, Swastika Investmart Ltd.
“Post a major correction from 16800 to 15183, the market has witnessed a short-covering rally. However, a major pullback can be expected only above 16000 levels,” the expert said.
NIFTY faces its first resistance at 15800 levels, post this level NIFTY might retest 16000 levels, said Meena.
He was of the view that If the NIFTY sustains 16000 levels, then the next retest levels will be 16400/16700.
What should investors do?
On what should investors do in the current market, the expert suggested Investors to deploy gradually and use buy on dips strategy in the current situation.
“SIP should be continued, and ongoing correction is a good buying opportunity to deploy more cash for the long term. However, there is an outside risk of a further 10-15℅ correction. Therefore, going lump sum is not the right strategy in current markets,” the expert added.
Earlier, In the broader market, Nifty midcap and smallcap seem to have got their mojo back as the indices gained up to 2.5% amid positive cues from the global market.
All sectoral indices too comfortably sat in the green, but Nifty IT, Consumer Durables and Media, gained over three percent in a positive market.
Titan, JSW Steel and HCL Tech were the top three gainers on NIfty50 and the Sensex. Interestingly, not a single stock on the benchmark indices traded in the red around 11.55 am on Tuesday.