The benchmark index opened in positive territory on the last trading day of the week after that we witnessed slight profit booking in the index, but the downside was limited as heavyweight Reliance industries supported the indices for the day.
Reliance Industries' market capitalisation crossed Rs 15 lakh crore and ended at its record high (2388.50) after news of the company's plan to enable capacity to generate at least 100 GW of electricity from renewable sources by 2030.
The markets closed at fresh record highs for the second consecutive day. At close, the Sensex was up 277.41 points or 0.48 percent at 58,129.95, and the Nifty was up 89.40 points or 0.52 percent at 17,323.60. About 1624 shares have advanced, 1469 shares declined, and 144 shares are unchanged.
Energy indices gained more than 1 percent while Nifty FMCG closed in red today. Shriram City Union Finance surged 12 percent and Prestige Estates jumped 9 percent today. HDFC Life and Cipla were among the top losers in Nifty 50 today.
"Nifty made a new all-time high of 17,340 and gave a closing around the same level. Today is the second consecutive day where Nifty has closed this high. This indicates strength in Nifty. Nifty closed at 17,323, up by 90 points. Nifty is now headed for 17,375 and 17,400 in the coming few trading sessions.17,200 and 17,280 will act as strong support levels for Nifty. Traders can consider buying on every correction with strict stop loss as long as Nifty is trading above 17150 levels," said Gaurav Udani, CEO & Founder, ThincRedBlu Securities.
Sachin Gupta, AVP-Research, Choice Broking, "Technically, the Nifty index again breached the immediate resistance of 17,250 and settled above it. Overall, the index is in momentum with bullish strength. Moreover, the index has given a Rising Trendline breakout on a weekly chart, which indicates further robustness in the counter. All the key indicators like RSI, MACD & Stochastic are supporting the positive trend in the index. Hence, market sentiments remain bullish along with the volatility. At present, the psychological level of 17,500 could be a resistance while on the downside, 17,100 may act as support for the index."
On the technical front, the market is witnessing a continuous positive trend and it has sustained well above 17,200-250 levels and we believe this up move will extend till 17,400-17,450 level in the short term, said Mohit Nigam, Head-PMS, Hem Securities. "On the down side 17,100 is the immediate support in Nifty 50 followed by 16,900," he added.
Nifty forms bullish candle on weekly charts
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd, said, "Technically, the index has formed a strong bullish candle on weekly charts which is broadly positive. On daily and intraday charts, it also maintains a breakout continuation formation indicating further uptrend from current levels. While the short-term trend remains positive, some profit booking could be in the offing as traders may prefer to book some profits near the 17,500 resistance level. For the trend following traders, 17,150 and 17,000 could be the important support level while on the flip side, 17,500 and 1,7700 could act as an important resistance level for the market. In the meantime, on weekly charts, the bank nifty has formed a range breakout formation, suggesting further upside if the index succeeds to trade above 36,000," he said.
Large caps are playing a catch-up rally in the last one month, which is driving the benchmark to higher levels. We believe that the style rotation holds the key, moving forwards, said Neeraj Chadawar, Head - Quantitative Equity Research, Axis Securities. "We are in a very interesting phase of the market where benchmark indices are touching all-time high levels in which the market positioning has slowly shifted towards high quality large cap names.
"The market breadth has narrowed in the last one month and the high quality large cap stocks outperformed the broader market. Quality theme is clearly back in focus. We continue to see the broader market doing well, as the visibility on broad-based earnings is still intact. Quality is an emerging theme which is now visible in the performance of the FMCG index. Allocations are now increasingly shifting towards quality stocks where the earnings visibility and the balance sheet strength are very high.”
Deepak Jasani, Head-Retail, HDFC Securities said, "Nifty gained 3.7 percent over the week, its second consecutive weekly gain and the largest in 7 months. The broader market, however, swings from negative to positive to even - day after day as investors try to find a clue about the direction of the mid and smallcaps even as the largecaps are back in favour of institutions – both foreign and local. Nifty could take support from 17153 while 17,480 could act as a resistance in the near-term."
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