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Updated on: Tuesday, August 10, 2021, 04:49 PM IST

Markets remain cautiously optimistic as Sensex, Nifty scale new highs in volatile market

The Bank Nifty closed the session at 36,034.10. levels.  | ANI Photo

The Bank Nifty closed the session at 36,034.10. levels. | ANI Photo

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Equity benchmark Sensex rose by 152 points to close at its fresh lifetime high on Tuesday on the back of gains in index majors HDFC, Bharti Airtel and Infosys amid positive trends in the global markets.

The 30-share index closed 151.81 points or 0.28 per cent higher at its lifetime peak of 54,554.66, while the broader NSE Nifty advanced 21.85 points or 0.13 per cent to 16,280.10. The Bank Nifty closed the session at 36,034.10. levels. On the sectoral front, Nifty Metal was the top loser while Nifty IT was the top gainer.

Overall, market sentiments remained weak today and there were only a few heavyweights which did most to scale Nifty upside. Shares of companies like Power Grid, Jindal Steel, Coal India, Manappuram Finance and Motherson Sumi slipped post their Q1 numbers as it missed market estimates. Brent futures remain weak keeping itself below 70 dollars. Bharti Airtel was the ace performer as it managed to close at 5- week high.

"The Nifty traded in a 160 points range today. It took support at 16,200 and made a new all time high of 16359 and took resistance there. It gave a closing of 16270, up by 10 points. The next up in Nifty will be seen once it closes above 16,350 level with higher than average volumes. As long as Nifty remains over 15,900, 16,400 and 16,450 levels will be seen on Nifty in the near future", said Gaurav Udani, CEO & Founder, ThincRedBlu Securities.

After a positive opening, the index made a new life-time high at 16,359.25 levels while the index couldn’t sustain at the higher level and made an intraday low at 16,258.25 levels but managed to close the session at 16,280.10 levels with a moderate gain of 21.85 points. The Bank Nifty closed the session at 36,034.10. levels. On the sectoral front, Nifty Metal was the top loser while Nifty IT was the top gainer.

According to Palak Kothari, Research Associate, Choice Broking, "Technically, the Nifty index has been trading in a range and hasn’t broken its previous day low and sustained above the same one, which indicates bullish strength in the counter. Furthermore, the Index has taken support from 50-HMA, which supports upside movement in the counter. A momentum indicator RSI & MACD is showing positive strength & Stochastic is also with positive crossover on the daily chart, which indicates a further bullish move. At present, the Nifty index has immediate resistance at 16,360 levels while downside support shifted up to 16,150 levels."

Technically, the benchmark indices are doing pretty well and intend to continue its bull run keeping support at 16,100 with a near term resistance at 16,400 and markets are capturing any significant dip as a good opportunity to invest, said Mohit Nigam, Head-PMS, Hem Securities.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said, the Nifty continues to trade in a narrow range with volatility and this market action could continue for the next session. After the upside breakout of the broader range recently, the Nifty sustaining with the upside breakout could be positive indication with regards to a trend of index. A decisive move above 16,360 is expected to open next upside towards 16,500 levels in the near term. Immediate support is placed at 16,200-16,150 levels, he said.

Technically, on daily charts the Nifty has formed a Doji kind of formation which indicates strong possibility of intraday correction if the index succeeds to trade below 16180, said Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd. "We are of the view that as long as it's trading above 16,180 the uptrend texture is bullish and likely to continue up to 16,350. Further upside may also continue which could lift the index up to 16,400. On the other side, below 16,180, the correction wave will continue up to 16,150-16,120 levels," he added.

Deepak Jasani, Head-Retail Research, HDFC Securities, said, Nifty has closed in a narrow band of 16,238-16,280 over the last five sessions suggesting a tug of war between bulls and bears as far as index heavyweights are concerned although the broader market continues to bleed. We expect Nifty to breakout upwards of this band (though mildly) before seeing a larger correction, he added.

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Published on: Tuesday, August 10, 2021, 03:53 PM IST
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