Benchmark indices NSE Nifty 50 and BSE Sensex made new all-time highs again today and ended Tuesday’s trading session broadly in green. The Nifty 50 rose 37.80 points or 0.19% to close at 19,748.25 after making a new 52-week high of 19,819.45 intraday. The Sensex jumped 205.21 points or 0.31% to settle at 66,795.14 after hitting a fresh all-time high at 67,007.02 intraday.
In sectoral indices, Nifty Bank fell 0.11%, Nifty IT gained 1.04%, Nifty Private Bank rose 0.04%, Nifty Financial Services fell 0.21%, Nifty PSU Bank slipped 1.28%, and Nifty Media soared 1.99%. The top gainers on Nifty 50 were Infosys, Asian Paints, HCL Technologies, Reliance Industries, Hero MotoCorp, Tata Consumer Products, ICICI Bank, and Bajaj Auto while the losers were LT Infotech, Titan Company, HDFC Life Insurance Company, Britannia Industries, and State Bank of India.
Where are NSE Nifty 50, Bank Nifty headed?
Nifty 50 support at 19700; may rally upto 19825-19875
“Market is flush with FII inflows, which is the major driving force behind the rally in benchmark indices. While the market may be in an overbought zone, the undertone remains bullish due to India’s strong economic performance and hopes that the US rate hike cycle could be nearing the end on the back of moderating inflation. However, technically, intraday correction formation is indicating that a range bound activity is likely to continue in the near future. For Nifty, 19700 could be the key support level for day traders, below which a quick intraday correction till 19650-19600 is seen. On the flip side, as long as the index is trading above 19700, the uptrend wave is likely to continue and could rally till 19825-19875,” said Shrikant Chouhan, Head of Research (Retail), Kotak Securities.
Bank Nifty target 46000-46500
“Bank Nifty consolidated after a sharp surge in the previous trading session. This consolidation is a healthy sign, and any dip should be used as a buying opportunity. The daily momentum indicator has a positive crossover and thus any sip is a buying opportunity. On the upside we expect the Bank Nifty to target levels of 46000 and 46500,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.
Indian IT Sector gains attention as the contra bet
“The bulls continued to lift the market to new heights, but volatility emerged in the second half due to concerns over valuation. Rapid fall in the dollar index and a slide in the US 10-year yield is supporting liquidity in emerging markets. While disappointing economic growth in China and improvement in the US market outlook are drawing attention to the Indian market with the IT sector as the contra bet,” said Vinod Nair, Head of Research at Geojit Financial Services.