Benchmark indices extended gains to end higher for the third straight session on monthly F&O expiry. BSE Sensex surged 800 pts to hit a fresh record high of 62412 before paring gains to end below the 62300 level. The NSE Nifty 50 index topped the 18500 level intraday before closing at 18484. The NSE Nifty Bank index also touched a fresh life-time high of 43070 during the session. All sectors, barring Nifty Consumer Durables, ended on a positive note with Nifty IT, Nifty Auto, and Nifty Bank indices leading the charge. “Led by broad-based buying, domestic indices witnessed solid gains as investors digested the latest FOMC meeting minutes, which hinted that the rate hike cycle may be slowing down. The optimism was further boosted by falling crude prices and the declining dollar index. Crude oil prices dropped over talks of a possible price cap on Russian oil and a rise in US product stockpiles,” said Vinod Nair, Head of Research, Geojit Financial Services.
V K Vijayakumar, Chief Investment Strategist, Geojit Financial ServicesTwo triggers assisted the Sensex rally to record highs. One, in the mother market US, the market construct turned favorable with rising equities, declining bond yields and falling dollar. Two, macro developments in India show steady rise in credit growth and capex indicating strong economic recovery. Along with this, sharp correction in crude is a big positive. This has facilitated this Sensex rally led by large-caps, mainly the HDFC twins, Infosys, TCS and RIL.
Osho Krishan, Sr. Analyst – Technical & Derivative Research, Angel OneThe index has maintained its cycle of higher highs – higher lows and decisively breached its previous swing high on the daily chart. Simultaneously, the strong bullish candle formation and the buoyant market participation on the expiry day construe an encouraging sign for the market. On the level front, the 18200-18300 level is expected to provide a cushion to any minor decline from the ongoing up move. At the same time, the index is well-versed to reclaim the lifetime high zone and enter uncharted territory in a comparable period.
There have been contributions across the board, wherein the significant benefactors that boosted the bullish sentiments were from the Technology and BFSI space. Also, the broader end of the spectrum did exceptionally well, which we believe to continue in the coming sessions. Ideally, we expect the index to keep up its momentum and any sort of blip to be considered as a buying opportunity for the coming sessions.
Kunal Shah, Senior Technical Analyst, LKP Securities
The Bank Nifty bulls came back with full strength and knocked out the bears from the resistance zone of 42,600-42,800 on the last day of monthly expiry. It has witnessed a fresh breakout on the daily chart, pushing it higher towards the level of 44,000 in the near term. The lower-end support is now visible at 42,600 which will act as a cushion for the bulls. The broader participation will resume in markets helping it to scale on the higher end.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
A long bull candle was formed on the daily chart, which indicates an attempt of sharp upside breakout of the crucial resistance around 18400 levels. This also signal an upside breakout of the range movement of the last two weeks. Positive chart pattern like higher tops and bottoms continued on the daily chart and the recent swing low of 18133 could now be considered as a new higher bottom of the sequence. Further up-move from here is likely to pull Nifty towards the new higher top.
After the choppy movement, the buying has finally emerged in the market at the highs and the immediate resistance of 18400 has been taken out on the upside. The Nifty is expected to move above another landmark of 18606 levels (all time high of Oct 21) and to form a new all time highs in the short term. Immediate support is placed at 18400.
