Equity benchmark Sensex skyrocketed 873 points to a fresh closing peak while the Nifty finished above the 16,000-mark for the first time on Tuesday, driven by gains in index heavyweights HDFC, Infosys and TCS.
The 30-share BSE index ended 872.73 points or 1.65 per cent higher at its lifetime high of 53,823.36. The broader NSE Nifty rallied 245.60 points or 1.55 per cent to record 16,130.75.
Titan was the top gainer in the Sensex pack, rising around 4 per cent, followed by HDFC, Nestle India, IndusInd Bank, UltraTech Cement and Bharti Airtel.
On the other hand, Bajaj Auto, Tata Steel and NTPC were the laggards.
The Nifty made a fresh new life time high at 16,146.90 levels, after 25-day consolidation along with the midcap index saw their highest close. In the dying hours of the session, sharp moves were witnessed in both the indices with the bank-nifty taking the lead.
After a positive opening, the index continued to inch higher and closed the session at 16,130 levels with a gain of 245.60 points. While bank nifty also traded higher and closed the session at 35207.45 levels with a gain of 497.45 points.
On the sectoral front, Nifty Metal and Media ended lower while Nifty FMCG and Financial services were the top gainer. Stocks like Titan, HDFC, IndusInd Bank and Nestle were the top gainers. While, JSW Steel, Bajaj Auto, Shree Cements and Tata Steel, were the top losers.
Sumeet Bagadia, Executive Director, Choice Broking said, “On the Technical Front, the index has finally given a breakout of 16,000 phycological levels and given closing above the same suggest a bullish movement in the upcoming day. Furthermore, the Index has given breakout above the Upper Band of Bollinger, which signifies strength for the next session. Momentum indicator MACD has also shown positive crossover on the daily time frame which suggests an upside rally in the counter. On a daily chart, the Index has formed Bullish Marabozu Candle, which adds strength to the counter. At present, the nifty support shifted to 15,800 level while resistance comes at 16,150 levels.”
The Nifty made a strong bullish bar today. It opened at 15,951 and closed with 241 points in positive. “Nifty managed to cross all its resistance and close above them at 16,126. Volumes on Nifty were higher than average which indicates strength. We can expect Nifty to touch 16,250 and 16,400 in the coming days. On the lower side 15,950 and 15,880 will act as strong support,” said Gaurav Udani, CEO & Founder, ThincRedBlu Securities.
The Nifty brushed past through 16,000 levels easily and closed higher. However volumes and AD ratio (equal on such a day) do not give confirmatory signals, said . However momentum is in favour, said Deepak Jasani, Head-Retail Research, HDFC Securities. "Hope that India will be a beneficiary of the recent troubles faced by China which is keeping sentiments upbeat. While valuations seem high, there is no point in pre-empting a top, but rather wait for signs of medium-term change in trend."
Kkunal Parar, Senior Research Analyst, Choice Broking said, "We are expecting a good upside up to the level of 16,300 to 16,400 on an initial level, while for medium term, we can see 17,500 levels. For downside, the index has strong support at 15,450. So any correction up to the level of 15750, would become a good buying opportunity with the support of 15450," he added.
Markets are buoyant and the large caps have started moving up, said Arun Malhotra, Founder & CIO, CapGrow Capital Advisors LLP. "Majority of the buoyancy in the last three months have been witnessed in small and midcaps that are due for correction. The Q1Fy22 results have been descent and will keep the market steady. A shift from small cap to large caps seems to be the trade right now."
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd, said, “Technically, on daily charts after a long time the index has formed a strong breakout formation which is broadly positive for the market. The strong bullish candle on daily charts clearly suggests further uptrend from current levels. For the breakout traders, the 16,050-16,020 levels would be the sacrosanct level to watch out. Above the same, the breakout formation could continue up to 16,200-16,250. On the flip side, below the 16,020 level, a strong possibility of quick intraday correction up to 15,950-15,925 could be seen."
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