Benchmark Indices closed on a positive note and ended at record highs with Nifty 50 closing (+)1.35 percent and Sensex closing (+)1.36 percent or 765 points. Except for the IT index, all other indices ended in green. Strong buying was seen in metal, realty and financial stocks. Bharti Airtel rose by 5 percent to Rs 625 per share after the telecom major said it plans to raise up to Rs 21,000 crore by selling shares to existing investors and prepare for the auction of 5G airwaves.
After a gap-up opening, the benchmark index continued the upside move and set a new lifetime high at 16,951.5 levels on Monday's trading session. The Nifty gained more than 200 points in a day to close at 16,938.30 levels while BankNifty ended at 36,347.65 levels with 2 percent gains. All the sectoral indices closed at green notes, except Nifty IT, which was down by 0.6 percent.
Gaurav Udani, CEO & Founder, ThincRedBlu Securities, said, "Nifty made a strong bullish bar today closing at its all time high level. The rally was also supported by Banknifty. Nifty may face a psychological resistance at 17,000 and 17,050 levels. It has strong support around 16,750 levels. Nifty is in a strong bullish trend and all dips can be used for buying with strict stop loss."
Sachin Gupta, AVP Reserach, Choice Broking said, "On the daily chart, the Nifty50 index has breached the prior resistance of 16,700 and moved towards the new milestone of 17,000-mark. Moreover, the index has also closed above the upper band of the Bollinger formation, which suggests a bullish presence in the counter. The index has been trading above all the important key indicators, which adds positive strength further. At present, the nifty index has immediate support at 16,700 levels while resistance may come around 17,000 levels."
Mohit Nigam, Head - PMS, Hem Securities for Monday, said, Bharti Airtel closed (+) 4.2 percent after a Rs 21000 crore fundraising plan gets board’s approval. Sona Comstar, Sandhar Technologies and Bharat Forge were in focus today due to news of Tesla tying up with these stocks. IEX surged 11 percent after it got included in the derivatives segment. On the technical front; 16,700 and 17,100 are immediate support and resistance in Nifty 50. Overall, we believe that markets are in a structural bullish trend and any significant dip is a very good opportunity to accumulate quality stocks."
The texture of a breakout continuation formation suggests an uptrend wave is likely to continue in the near future, said Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd, said. "For the day traders, the support has shifted from 16,700 to 16,800- 16,850 levels. On the flip side, due to overstretched rally intraday charts indicating overbought situation and markets may take temporary pause near 17,000-17,050 levels due to an extended rally while intraday charts suggest the market is in an overbought situation. As long as the index holds 16,800 level, the uptrend formation could continue up to 17,000-17,050 levels, whereas on the down side, below the 16,800 level uptrend would be vulnerable," he added.
