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Nifty, Sensex end at record highs amid dovish Fed, positive PMI; could see consolidation at higher levels

The BSE Sensex rose for the seventh consecutive session to 63,583 before closing at 63,284.

Nifty, Sensex end at record highs amid dovish Fed, positive PMI; could see consolidation at higher levels
The Indian economy’s growth of 6.3% in Q2 was in line with the RBI’s forecast, while the manufacturing PMI rose to 55.7 in November.

Nifty and Sensex made new intraday record highs as well as new record closing highs on Thursday, extending gains for the eight session in a row. The BSE Sensex rose for the seventh consecutive session to 63,583 before closing at 63,284. NSE Nifty hit 18,874, ending 12 points above the 18,812 level. Bank Nifty hit a record high intraday as well, at 43,515, before closing at 43,353. The Nifty IT index soared 2.42%, with TechM, Coforge and L&T Technology Services leading the gains. “Bulls got more reasons to celebrate, boosted by favorable macroeconomic data and strong global markets. The Indian economy’s growth of 6.3% in Q2 was in line with the RBI’s forecast, while the manufacturing PMI rose to 55.7 in November. Global investors’ concerns were allayed as the Fed chair adopted a dovish stance indicating slower rate hikes in the future,” Vinod Nair, Head of Research, Geojit Financial.

Sahaj Agrawal, Head of Research – Derivatives, Kotak Securities
We continue to remain structurally positive on the markets and suggest selective aggression at current levels. Markets have conquered a long pending medium term level of 18800. The last trend level was defined at 18075; we await for a near trend support level to mature. Pharma and BFSI space looks attractive while banking can be participated in by a staggered manager.

Also read: November GST collection a tad bit below Rs 1.5 lakh crore; rises 11% on-year, but slips from previous month

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Although markets extended gains and scaled fresh highs once again, the recent upsurge failed to gather steam today, as indices closed off their highs due to flattish cues from other Asian and European peers. While the undertone remains bullish, the focus will now shift to next week’s credit policy announcement. Most of the positive factors are still intact, but if the rate hike is above expectations, it could trigger a sharp sell-off in the near term. Technically, the Nifty has formed a small bearish candle on daily charts indicating indecisiveness between the bulls and bears. While the larger texture of the market is bullish, due to temporary overbought conditions we could see some profit booking at higher levels. For traders, 18,700 and 18,650 could act as key support zones whereas 18,900-19,000 would be the key resistance levels.

Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty after registering fresh all time highs on Dec 01, closed off the all-time highs, though rising for the eighth consecutive day. Nifty closed 0.29% or 54.2 points higher at 18,812.5. Broad market indices outperform. IT stocks came back in favor on value buying. Encouraging PMI manufacturing number for November (55.7) also helped sentiments. Global stocks climbed and the dollar slipped to a three-month low on fresh signs of a softening in China’s Covid stance and Federal Reserve Chair Jerome Powell confirmed that the pace of interest rate hikes was set to slow. Nifty is now showing signs of running out of steam for the time being. 18,888 could be a tough resistance to cross while 18,678 could offer support in the near term.

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First published on: 01-12-2022 at 04:33:01 pm