The markets closed trading session for the day on a buoyant note. Bulls continued with a positive momentum as benchmark Nifty hit another fresh all time high of 16,290.20 after a massive breakout. The uptrend was largely supported by the HDFC twins, private banks and financial stocks.
Equity benchmark Sensex rallied 546 points to finish above the 54,000-mark for the first time on Wednesday, tracking strong gains in financial stocks amid positive cues from global markets.
After scaling its lifetime peak of 54,465.91 during the session, the 30-share index ended 546.41 points or 1.02 per cent higher at a record 54,369.77.
Similarly, the broader NSE Nifty surged 128.05 points or 0.79 per cent to its all-time peak of 16,246.85. It touched a lifetime intra-day high of 16,290.20.
"Nifty continued its positive run even today. It opened at 16195 and was able to sustain over yesterday's high for the entire day before closing at 16250. It was up by 119 points today. The rally in Nifty was fueled by banking stocks. BankNifty closed about 775 points or 2.2% above yesterday's close. Nifty may see 16400 and 16450 levels in the coming few days similarly Banknifty may see 36500 and 37000 levels. Nifty will see strong support at 16200 and 16950", said Gaurav Udani, CEO & Founder, ThincRedBlu Securities.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd, "Technically, on daily charts the index has formed breakout continuation formation, which is broadly positive for the market. But intraday charts and momentum indicators suggest temporary overbought situation and traders may take cautious stance near 16,300 -16,330 level. We are of the view that in next few trading sessions buying on dips and sell on rallies would be the ideal strategy for the day traders. The trade setup suggests that 16,200- 16,150 would be the key support level for the bulls. On the flip side, the 16,300-16,330 level could be the immediate hurdle for the market."
Deepak Jasani, Head-Retail Research, HDFC Securities, "Nifty rose with another gap up reflecting the pent-up demand in index heavyweights. Advance decline ratio however has turned very negative despite Nifty being up, suggesting profit taking in the broader markets. With other markets doing well, Nifty could continue to remain steady/up, while the broader market correction could continue for a few sessions."
Technically, the nifty index is shining after a breakout of prior resistance at 15962 levels. Overall, the index is trading above Upper Bollinger Band and Ichimoku Cloud formation, which suggests a long upward move in the counter, said Sumeet Bagadia, Executive Director, Choice Broking. "A momentum indicator RSI & MACD is showing positive strength & Stochastic is also trading higher with positive crossover on the daily chart, which indicates a further bullish move. At present, the Nifty50 support shifted up to 16100 levels while resistance may come around 16400 levels."
The Nifty has given breakout of the trading range of 15,500-15,950. An impulsive up-move backed by liquidity has pushed the index towards 16250 mark and is further expected to gain. Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities said, "We continue to remain positive on the broader markets and suggest buying on dips. For the August series range is seen at 15,900-16,600 with a positive bias. Banking and Auto stocks are expected to gain momentum while Metal stocks could witness profit booking. Mid-cap space is expected to move incremental with pockets of outperformance.”
