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In an unusually strong session, the domestic stock market witnessed a massive surge fuelled by strong short covering, and this helped Nifty to end the day on a robust note. The market opened on a quiet note, and spent the first hour of the trade in a capped range and kept on moving above and below the previous close.

With Wednesday’s breakout, the bulls seem to have unleashed a fresh leg of upswing, said analysts. Nifty can now even hit the swing high of 9,889 in the coming sessions, but before that, it may face some hiccups near the 9,500 level, says Mazhar Mohammad of Chartviewindia.in. In one strong run, Nifty retracted the losses of past eight sessions, indicating strength. Both daily strength indicator RSI and momentum indicator Stochastic are in a bullish mode, which support an upside momentum analysts said...

Nifty started Wednesday’s session on the positive note on the back of favourable cues from the global indices. It managed to hold the 9,000 mark and rebounded piercingly in the later half of the session. The index rallied by more than 300 points from its intraday low of 9,004 and managed to conclude the session a tad above the 9,300 mark. Nifty has moved above its major hurdle in the 9,150-9,180 zone and formed a bullish candle on the daily chart. It broke out of the falling trend line on the daily chart, which is a positive sign for the index. Momentum oscillator RSI is placed positively on the daily chart and thus, we may see continuation of the up-move in the coming days.

Nifty50 rallied over 3 per cent on Wednesday to top the 9,300 level on a closing basis. The index formed a long bullish candle on the daily charts. During the session, the index took support at its 50-day moving average, whose value stood at 9,006 at close. The NSE barometer also closed above its 20-day moving average, which analysts said is a positive signal. Going ahead, the index may face resistance at 9,500 level and have support near 9,250, said analysts.

Benchmark indices ended with strong gains a day ahead of May series F&O expiry with the Sensex closing the day with a robust gain of 996 points, or 3.25 percent at 31,605.22 and Nifty surging 286 points, or 3.17 percent, to 9,314.95. "Benchmark indices staged a rally in sync with global cues, as some pockets of value buying emerged. Inspite of the rising number of infections, markets expect slow return to normalcy, when lockdown 4.0 ends this week. The volatility is expected to continue, ahead of tomorrow’s F&O expiry," said Vinod Nair, Head of Research at Geojit Financial Services.

If you are underinvested in the equities, this is a great time to accumulate stocks via SIP and if you are overweight, reduce the allocation on rallies, Devarsh Vakil, Head, Advisory, HDFC Securities, tells Moneycontrol’s Kshitij Anand in an interview. Edited excerpts:

New market leaders will emerge who will adapt to new challenges created by this unprecedented impact on global economy. Historically, every bull run had new leaders to lead the pack. Post COVID-19, we feel, Artificial Intelligence(AI), Pharmaceuticals, Speciality chemicals & Telecom might lead the broader indices, Amit Jain, Co-founder & CEO at Ashika Wealth Advisors said in an interview to Moneycontrol's Sunil Shankar Matkar. edited excerpt:

Nifty seemed to be in consolidation mode on Tuesday, as it traded in the 8,960-9,180 range. Analysts said the formation of a Hammer-type candle on the weekly chart signalled that any minor weakness from here on could be a buying opportunity in the short term. They said the market is expected to remain volatile as Covid-19 cases continued to rise in India, which created uncertainty about further extension of the lockdown measures.

The domestic stock market on Tuesday continued to display a total lack of conviction at higher levels. At the same time, it also continued to face resistance at the 50-DMA on a closing basis. Nifty saw a reasonably strong opening as markets opened after a gap of one day. Following a good start, the index set itself on a declining trajectory and remained in a falling channel throughout the day. Nifty came off over 160 points from the high point.

Benchmark indices failed to hold on to their their opening gains on May 26 and ended marginally lower with Sensex closing the day with a loss of 63 pointsat 30,609.30 and Nifty settling 10 points lower at 9,029.05. "It is a short week and the focus would remain on the earnings announcements. We feel the upcoming derivatives expiry will keep the participants on their toes. We reiterate our cautious view and suggest keeping a close watch on the banking index for cues. Nifty should see a decisive break from the prevailing range of 9,000-9,200 for any directional move," Ajit Mishra, VP - Research, Religare Broking.

The automobile companies may benefit from the rate cut. Due to the pandemic, the people of the country try to avoid public transport and may prefer their own vehicle, Gaurav Garg, Head of Research at CapitalVia Global Research Limited- Investment Advisor, said in an interview with Moneycontrol’s Kshitij Anand.

The banking sector is likely to remain under pressure in the near term due to high correlation with the economy, and the assets quality and business growth are expected to remain subdued in coming quarters, Sundar Sanmukhani, Head of Fundamental research desk at Choice Broking, said in an interview with Moneycontrol’s Kshitij Anand. Edited excerpts:

As India resumed domestic air operations partially on Monday, nearly 60 per cent flights operated at full capacity, signalling pent-up demand. That is good news. But RBI’s rate cut signalled lower margins ahead for banks at a time when they are expected to see a spike in bad loans. These distress signals for the market’s largest overweight sector do not augur well for the indices.

Friday’s session on Dalal Street started with the surprise rate cut by RBI, which advanced the June monetary policy meeting to bring down the repo rate by 40 basis points. The market remained rangebound in initial trade as the markets awaited RBI’s press conference. But the rate cut did not enthuse the market, and a bleak growth outlook that the central bank presented further depressed sentiment.

The Indian market is expected to tread sideways this week amid a volley of factors, including rising cases of coronavirus, souring relations between the US and China and deteriorating macroeconomic environment. Besides, most bank and financial stocks may also extend their losses of the previous session after the Reserve Bank of India (RBI) announced the extension of loan moratorium by three months.