The stock market indices surged to record high levels for the second consecutive day backed by IT, power, healthcare and metal stocks. Strong buying was seen in selected metal and IT stocks.
Markets continued its strong performance as benchmark Nifty successfully cleared the 17,000 mark on the back of a broad-based rally. In the last three trading sessions, the Nifty has rallied over 580 points as investors are placing bullish bets after worries of the US Fed's decision on interest rate hike dissipated.
Sensex was up 662.63 points or 1.16 percent at 57,552.39, and the Nifty was up 201.20 points or 1.19 percent at 17,132.20. About 1434 shares have advanced, 1537 shares declined, and 105 shares are unchanged.
"Nifty made another lifetime high today. It has been showing strength since the last four trading sessions. It closed today at 17130, up by 200 points. Today's increase in nifty was with good volumes , which indicates the strength may continue. We may see 17,200 and 17,220 in the next few trading sessions. 16950 to 16900 will act as support for nifty. Any correction in Nifty can be used as a buying opportunity with strict stop loss," said Gaurav Udani, CEO & Founder, ThincRedBlu Securities.
According to Mohit Nigam, Head-PMS, Hem Securities, "Strong buying is seen in selected metal and IT stocks. Bharti Airtel rallies 7 percent and Bajaj Finance up by 5 percent today. Aluminium hit 10-year high on strong demand; Nalco up by (+)3.18 percent, Hindalco up by (+)4.52 percent today. AU Small Fin Bank tanks 13% today after resignation of their CRO and some more resignations underway. IPOs of Vijaya Diagnostics Centre and Ami Organics to open for subscription tomorrow. On the technical front Nifty 50 has breached an important resistance level of 17,100 today which may lead the markets to test 17,250 levels in the near term. 16,900 should act as an immediate support in Nifty 50", he added.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd, said ,"The medium term trend is still positive and likely to continue in the near future. However, day traders may take cautious stance near the 17,200 resistance level. The 16,980 level would be a sacrosanct support level for the swing traders, and above the same the uptrend momentum could continue up to 17,200. On an extended rally, the upside may continue further, which could lift the index up to 17,275. On the flip side, a strong possibility of a quick intraday correction up to 16,900 is not ruled out if the index succeeds to trade below 16,980 support level."
On a day of large month-end volumes on the NSE, none of the sectors ended in the negative while telecom, consumer durables, IT and metals were the main gainers. Broad market indices underperformed with a gain of 0.5 percent each.
Deepak Jasani, Head-Retail Research, HDFC Securities, "Stock markets set new record highs on Tuesday as investors ended August in a buoyant mood, confident of an ongoing economic recovery and that the Federal Reserve's eventual paring back of its stimulus would not knock asset prices anytime soon. European stocks edged higher on Tuesday, on track for their seventh straight month of gains. Nifty sliced through 17,000 without much effort. A flat advance decline ratio on such a day denotes traders flocking to largecaps and taking profits out of mid and smallcaps. Nifty could now face resistance at 17,250 while 16,951 could provide support."
Palak Kothari, Research Associate, Choice Broking, "On the daily chart, the Nifty50 index has breached the psychological level of 17,000 with the increase in volume and showed a straight upside rally which points out strength in the counter. Moreover, the index has given breakout of the rising trendline as well as its trading 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 shifted to 17,000 levels while resistance may come around 17,200 levels."
