In a dazzling display of market strength, the domestic index NSE Nifty 50 soared to an unprecedented 20,000 mark in today’s trading session. The benchmark advanced 180 points from yesterday’s close at 19,819.95. Nifty 50 had conquered the 19,000 level for the first time on June 28, 2023, almost 21 months after scaling the 18,000 mark. Over the last six months, the index has risen more than 16%, while Nifty 50 jumped almost 2.5% in the past month. From its 52-week low of 16,747.70, the benchmark has soared 19.4% to touch 20,000 in 75 days.
Tracking 1000 point ascents
From 10,000 to 15,000, the benchmark index conquered each level in a matter of days, with 11,000 achieved in just 47 days, followed by 12,000 in 84 days, 13,000 in 43 days, 14,000 in 37 days, and an astonishing 15,000 in a mere 36 days. However, the journey from 18,000 to 19,000 proved to be a much more formidable task for the index. It required a substantial 425 trading sessions to breach this particular level amid a time correction and sideways movement.
“Resounding success of G20 brings in the desired momentum and market valuations are yet to cross previous peaks. Boost in bilateral trades should benefit various segments like pipes and cables. Sectors like Railways, Shipping and Logistics would be direct beneficiaries of recent announcements,” said Kaushik Dani, fund manager – PMS, Abans Investment Managers.
Outlook
The overall market sentiment remains positive, and we continue to recommend a “buy on dips” strategy for new entrants. However, approaching the 21,000 level on the index in the near term warrants caution. “We will reassess market conditions at the end of the month,” said Manish Chowdhury, Head of Research at StoxBox. He added that he advise investors to monitor the large-cap space, where the risk-reward ratio has become favorable, particularly in the IT sector and for heavyweights like Reliance Industries, HDFC Bank, and ITC.
The market sentiment is poised to remain buoyant, contingent upon the Nifty maintaining its ground above the critical 19,900 level. To the upside, a resistance band looms within the range of 20,100 to 20,200. “If there is a convincing breakthrough above 20,200, it could pave the way for the Nifty to advance towards the 20,500 mark,” said Rupak De, Senior Technical Analyst at LKP Securities.