The markets ended in the green with the Nifty closes well above 20,050 at 20,070 up 0.38 per cent. The sensex shut shop up 245 points, but short of the 52-week highs of 67,619.17. The broader markets saw steady gains. The Bank Nifty was among the star performers and it breached the previous high of 45,894 and closed above 45,900. The market breadth was evenly poised.
The top gainers in today’s trade included Grasim, Coal India, Titan, Bharti Airtel, OMCs like BPCL, onstream oil companies like ONGC and host of PSU Banks.
Shrikant Chouhan, Head of Research (Retail), Kotak Securities added that, “As Nifty closed above the 20K mark amid buying in metals, oil & gas and telecom stocks, even as other Asian and European counterparts continued to linger in negative territories. Surprisingly, buying has continued despite persistent selling by foreign investors and valuations getting stretched in the ongoing market rally. Investors are willing to take long term equity bets here as other key markets are facing strong macroeconomic headwinds. Technically, after a promising rally, the Nifty then witnessed a range bound activity near the 20000 mark. On daily charts, it has formed an inside body candle which indicates indecisiveness between the bulls and bears. For traders now, 19950-19000 would act as key support zones while 20100-20150 could act as key resistance levels for the bulls.”
Nifty Technical Outlook
The Nifty’s close above 20,000 also sets the stage for fresh levels to watch out for. Ajit Mishra, SVP – Technical Research, Religare Broking said, “Markets edged higher after a day of pause and gained nearly half a percent. Meanwhile, a mixed trend on the sectoral front kept the traders busy wherein energy and banking posted decent gains while auto and IT ended lower. The broader indices too took a breather and ended in the green. We reiterate our positive view on markets and suggest continuing with stock-specific approach, with a focus on index majors and other heavyweights. Among the sectoral pack, banking, financials and IT hold prominence for further up move so align positions accordingly.”
Bank Nifty Outlook
The bank stocks were among the top performers in trade today and as the Bank Nifty breached previous highs, Gedia identifies the key levels to watch out going forward- “it managed to breach the previous day high of 45894 and closed above that indicating that it has started next leg of upmove. On the upside it has the potential to retest the swing high of 46370 and above that 46500. Daily and hourly momentum indicator has a positive crossover which is a buy signal.”
Bullish trend for rupee
Meanwhile the rupee traded rangebound ahead of key inflation data in US. Dilip Parmar, Research Analyst, HDFC Securities. Said, “Indian rupee consolidated in the narrow range ahead of the August US CPI release. It will probably lay the groundwork for a reasonably hawkish FOMC meeting this time next week. The Fed will as per the Dot Plots, hold out the threat of one further hike this year. This should keep the dollar reasonably bid well in the near-term. In the near term, spot USD-INR has resistance at 83.15 and support at 82.80. The bias remains bullish for the pair as long as it holds the level of 82.70.”