The domestic indices rallied to hit fresh record highs intraday before paring gains to end at record highs. Sensex closed at 62,504, up by over 200 points or 0.3%, while Nifty closed the session at 18,562. Bank Nifty was trading marginally in green and ended at 43,020. The broader market was trading in the green while Nifty’s sectoral indices shifted between gains and losses. Nifty Metal was the biggest loser, ending down 1.19%, while Nifty Oil & Gas rose 1.36%. “Despite unfavorable global cues, the domestic market reversed its early losses to trade at record highs. Following the decline in oil prices, oil & gas stocks led the rally in anticipation of margin gains, as ongoing protests in China fuelled demand concerns. Going ahead, global markets will depend on Powell’s speech on Wednesday, which is crucial in maintaining the momentum, as the market seems to have factored in a moderation in the pace of rate hike,” said Vinod Nair, Head of Research, Geojit Financial Services.
Deepak Jasani, Head of Retail Research, HDFC Securities
Progressive and prudent macro policies, resilient corporate earnings in Q2FY23, robust tax collections, early signs of recovery in IIP and GDP and first signs of cooling inflation have all excited investors including FPIs to keep pumping money into the markets. Broad markets outperformed in terms of gains and A/D ratio. Global stock markets traded lower after a series of protests in China over the weekend, against strict mobility restrictions to combat the country’s ongoing COVID outbreak, hit sentiment and threatened to weigh on economic activity. Nifty can make one more attempt to cross and close above the 18604 levels in the near term. Better global market trajectory could help in this regard, 18442 could be the support.
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Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After forming a breather type candle pattern on Friday, Nifty witnessed a decisive up move from intraday lows on Monday. Upside momentum continued in the mid part and minor consolidation was seen at the all time highs towards the end. A long bull candle was formed on the daily chart, which indicates an upside continuation pattern. The smaller degree of positive sequence like higher tops and bottoms continued in the market on daily charts and Nifty is currently nearing a new higher top of the sequence at new highs. Still there is no indication of any reversal forming at the highs.
According to the weekly chart, Nifty is in a sharp uptrend movement and there is no sign of any tiredness/reversal observed at the highs. Having registered a new all time high, the next upside target to be watched for Nifty is at 0.786% fibonacci extension at 18955 levels (taken from the June bottom, Sept top and Sept higher bottom-as per weekly chart). This could be achieved in the next 1-2 weeks. Immediate support is placed at 18350 levels.