Benchmark Indices closed on a positive note with Sensex (+) 0.42 percent and Nifty50 (+)0.36 percent with indices hitting record high in today’s session amid other Asian peer gains. Gains in broader markets helped investors look past data of retail inflation which is at a six-month high level.
Sensex jumped by another 221 points to scale a new closing high of 52,773 on Tuesday, propelled by gains in index majors Reliance, Infosys, and HDFC twins amid largely positive global cues. At the closing bell, the 30-share BSE index quoted 221.52 points or 0.42 percent higher at 52,773.05.
Likewise, the broader NSE Nifty rose 57.40 points or 0.36 per cent to settle at a fresh high of 15,869.25.
Mohit Nigam, Head-PMS, Hem Securities said, FMCG stocks are witnessing fresh buying today on hope that demand will be back after easing restrictions by states raised hopes for faster economic recovery. The RBI has proposed to remove the ceiling on interest rates for micro-finance lenders, among other key measures which is positive for micro-financiers.
Asian Paints, Axis Bank and ICICI Bank were among the top gainers in Nifty 50 while Divis Labs, Coal India and Bajaj Finserv were among the top losers in Nifty 50 today. Today Nifty50 has crossed an important resistance level of 15,850 now the next target for nifty would be 16,000 with immediate support level of 15,800.
Technically, the Nifty is in a bullish trend from the last many trading sessions and making higher highs formation, said Sumeet Bagadia, Executive Director, Choice Broking. In the recent session, it has breached an immediate resistance of 15,835.55 and settled above it, which indicates bullish strength in the counter. On the daily chart, the index has been hovering above 200 and 100 days Simple Moving Averages. Moreover, an oscillator Stochastic has also suggested positive crossover, which indicates bullish strength for the near term. At present, the Nifty seems to have resistance at around 16,000 levels while immediate support comes at 15,650 levels, Bagadia said.
The market is trading at the highest point of the current up move and we are witnessing mixed reaction in the market. The stock-specific activity is increasing day by day, which is an indication of a "cautiously optimistic" approach from the traders, said Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd. "As the market has closed above the level of 15,850/52,750, we could see indices breaching the levels of 16,050/53300 in the near term. Supports for the market exists at 15,800/52,600 and at 15,750/52,300. The Bank-Nifty is heading towards the level of 35,700 and corporate facing banks should do well," Chouhan said.