The Indian equity indices on Tuesday closed marginally higher from its previous close. Sensex advanced 90 points or 0.12% to close the day’s trading at 73,738.45. The Nifty 50 closed 31.60 points or 0.14% higher at 22,368. The gainers included Grasim Industries, Bharti Airtel, Maruti Suzuki, Nestle India, and HCL Technologies.
The Indian Volatility Index (India VIX) meanwhile saw a sharp downward move and tanked 19.76%. Anand James, Chief Market Strategist at Geojit Financial Services commented on the VIX level and said “The lower the VIX, the more confident, the traders are about the ongoing upswing. Options traders also react to such scenarios by reducing expectations of premium expansion. But the suddenness of VIX’s fall today, especially when Nifty barely rose above 0.5%, needs to be factored in when acting on the VIX’s signal. Also important to note that VIX is calculated on the basis of bid-ask quotes of near as well as next month Nifty option contracts, and contracts expiring from 26th April onwards would have a lot size of 25, half of what is in play now, which could have a role in bid asks getting tighter.”
The Nifty Midcap 100 jumped 518 points or 1.06% to finish the session at 49,614.85. Nifty Bank closed the day’s trading 45.55 points higher at 47,970.45.
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On the sectoral front, realty and FMCG stocks led the indices higher. In the broader indices, smallcap and midcap stocks closed in the green.
“The Nifty remained sideways throughout the session as it failed to provide any directional breakout. However, the overall trend remains positive as the index closed above the critical moving average. The Relative Strength Index (RSI) is showing a bullish crossover with a reading below 60. On the higher end, the range of 22350-22400 is likely to act as a resistance zone; a decisive breakout above 22400 might trigger a rally in the market. On the lower end, support is positioned at 22250; a breach below this level might weaken the bullish sentiment,” said Rupak De, Senior Technical Analyst at LKP Securities.
“The Bank Nifty index experienced a sideways trading session following a positive opening, with bears asserting dominance at higher levels. Despite this, the overall sentiment remains bullish, suggesting that dips should be seen as buying opportunities. Strong support is observed around the 47800-47700 zone. However, the immediate hurdle lies at 48200-48500. A breakthrough above this resistance could pave the way for the index to achieve fresh all-time high levels,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.