Indian equity closed on a record-high note on Monday. The NSE Nifty 50 hit a new all-time high of 23,754.15 surpassing the previous high. The index later closed 183 points or 0.78% higher, from its previous close, at 23,721. Similarly, the BSE Sensex touched a new record high of 78,165 and settled above the psychological level of 78,000 for the first time ever. Sensex closed 712 points or 0.92% higher at 78,054. Shriram Finance, Axis Bank, ICICI Bank, and both the HDFC twins were the major gainers in the Nifty 50 on Monday.
Sectoral Index
On Monday, Bank Nifty saw a rally of over 1,000 points in a single day. The bank-heavy index touched an all-time high of 52,746.50. Bank Nifty settled 902 points or 1.74% higher, from the previous, at 52,606. Bucking the overall trend, Nifty Midcap 100 fell 209 points or 0.38% closing the day’s trading at 55,369. In the broader markets, midcap stocks closed down in the red.
Sectoral draggers
The sectoral indices Nifty Bank, Financial Services, and Private Banks led the markets to new highs. However, realty and metal stocks saw profit booking.
Expert’s take
“The domestic market experienced a financial sector-driven rally today, primarily led by private banks, with the Nifty Bank reaching a new high and the Sensex surpassing 78,000. However, profit booking was evident in sectors such as realty, power, metals, and midcaps. Amidst moderate consolidations and sector rotations, the market is moving upwards due to expectations from the upcoming budget. Additionally, the progress of the monsoon is being watched for insights into the consumption outlook,” said Vinod Nair, Head of Research, Geojit Financial Services.
“A bullish candle on daily charts and higher bottom formation on intraday charts indicate the continuation of an uptrend wave in the near future. For the trend-following traders now, 23600/77500 would act as a trend decider level. As long as the index is trading above the same, positive sentiment is likely to continue. On the higher side, 23835-23900/78500-78700 would be the immediate resistance zones for the bulls. However, below 23600/77500 uptrend would be vulnerable. Below the same, trades may prefer to exit out from the trading long positions,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
Bank Nifty
“Bank Nifty broke out of a three-day consolidation on the upside and started its next leg of the upmove towards 53100. Daily and hourly momentum indicators have a positive crossover, which is a buy signal. The trailing stoploss for long positions should now be trailed to 51750,” said Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas.
