Although markets opened weak, key indices rallied quickly and held onto key psychological levels of 60k and 18k respectively. The trigger was that markets welcomed the HDFC merger announcement and the rally in both stocks spilled over into other financials and spilled over into other sector stocks as well. Nifty has gracefully climbed above 18000 on the daily chart after a sustained trade above the previous consolidation. The market ended April 4th higher for the second straight session, driven by bank names following news of the merger of HDFC and HDFC Bank. On completion, the Sensex rose 1335 points to 60611 and the Nifty rose 382 points to 18053. Also, recent key economic indicators such as core growth numbers and all-time highs in GST earnings showed that the domestic economy has shrugged off geopolitical tensions. On the daily charts, the Nifty is holding an uptrend formation, but due to the overbought texture, traders may prefer to book some profit at higher levels. For the trend-following traders, 17850 would act as the key support level and above that the index could reach the 18175-1250 level. On the other hand, a quick intraday correction is not ruled out if the index trades below 17880 and below that it could retest the 17950-17900 level.
Resistance: 18150, 18200, 18250
Support: 18000,
17950, 17900
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