Market Watch: Market Watch: Mt 16K strong resistance zone for Nifty | The Economic Times Podcast

Tracking the surge in global markets and declining commodity prices, the domestic stock market today continued to rally for the third straight day. The Sensex rose 433 points or 0.82 per cent to end the session at 53,161.28. Its broader peer, Nifty50, added 132.80 points or 0.85 per cent to close above the 16,320 mark.

Market experts say the global factors at this stage are more important than the domestic factors in driving the stock market higher. Falling inflation expectations and easing of COVID-19 restrictions in China that lifted global commodities helped assuage sentiments in global markets.

Volumes on the NSE continue to be on the lower side suggesting lack of conviction on the part of traders to take a big bet.

Capital goods, IT and metals were among the top gainers. The broader markets too participated in the up move wherein midcap and smallcap ended higher by 0.9% and 2%, respectively.

Siddhartha Khemka of Motilal Oswal Financial Services expects market volatility to continue this week with Nifty approaching its strong resistance around the 16,000 mark.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said the short term trend of Nifty continues to be positive. Display of lack of strength to sustain the highs during upside breakout is likely to result in further consolidation or downward correction from the highs. On the other hand, a decisive up move above 15,900 could open further upside towards another hurdle of 16,200 levels, he said.

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