Unexpected rally cheers investors

Mumbai: The stock market crossed the all-time high of 73,400 due to strong domestic cues. NSE Nifty gained 355 points and BSE Sensex gained 1,245 points from the previous close, which was unexpected for both the bulls and the bears. Bank Nifty provided great support in pulling the market beyond its all-time high, rising 2.50 per cent, the biggest gain in several sessions. However, defensive sectors like IT and Pharma remained weak, while Metals, BFSI and Cap goods outperformed.

“Now, the market has crossed 73,400 level, the key levels to watch are 74,000 or 74,300,” says Shrikant Chouhan, head (equity research), Kotak Securities. Conversely, 73,000 and 72,700 would be the crucial supports. It is advisable to have a strategy to buy on dips.

Bank-Nifty could face a big hurdle at 47,000 level, but if it breaks quickly, it can reach 48,000 or 48,000 levels. Based on technical analysis, it is on the verge of hitting the all-time high level of 48,637 points. On the other hand, if the index drops, 47,000 and 46,750 would offer support. Prashanth Tapse, senior V-P (research), Mehta Equities, says: “The strong resilience in India’s Q3 GDP growth numbers propelled Sensex & Nifty to fresh record highs amid a rally in index heavyweights such as Reliance Industries, Tata Steel and banking stocks. Despite the sharp rally, volatility cannot be ruled out due to ongoing concerns like delay in rate cuts, conflicts in the Middle East and expensive valuations of local stocks.”

The upsurge shows that investors are willing to place bullish bets on Indian stocks amid continuity in economic policies and robust investment climate. From a technical perspective, if Friday’s bullish trading action is any indication, then Nifty’s next goal post is seen at its psychological 22,500 mark followed by aggressive targets placed at 23,000 mark, while the make-or-break support is at 21,861 mark.