The Nifty index continued its bullish trend, with even the smallest dips being swiftly bought into, propelling the index to new heights. On Wednesday, the index reached a new record high of 26,032, with market participants closely watching to see how long this peak will hold.
A late surge in index heavyweights was the key driver behind the Nifty’s ascent. HDFC Bank, Reliance Industries, Axis Bank, and ICICI Bank all witnessed a sharp rise in the final half hour of trading, pushing the index to its latest record. The monthly expiry of the Nifty Bank futures also contributed to the upward momentum.
Early Sluggishness and Quick Recovery on Wednesday
Earlier in the session, the Nifty faced some sluggishness, briefly slipping below the 25,900 mark. However, that dip was quickly bought into, and the index recovered more than 130 points from its intraday lows, ultimately closing above the 26,000 mark for the first time.
Midcap and Smallcap Indices see maximum losses
Despite the record highs for the Nifty, Sensex, and Nifty Bank, broader market performance painted a less rosy picture. The midcap index snapped a three-day winning streak, while the smallcap index fell for the second consecutive session, marking its fifth decline in the last seven trading sessions.
Nifty’s Strong Series Performance Ahead of Monthly Expiry
Thursday marks the monthly expiry of the Nifty futures, and the index has already gained over 850 points in this series. If the trend holds, it will mark the fourth consecutive F&O series where the Nifty ends with gains. In August, the Nifty closed the series with a gain of over 300 points, reinforcing its strength in recent months.
Foreign institutions were net sellers in the cash market on Wednesday, while domestic institutions were net buyers. The numbers could also be skewed due to block deals seen in stocks like Easy Trip Planners and KPR Mill.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded up by 0.20% at 100.44.
Crude Oil
WTI crude prices are trading at $70.66 down by 1.26%, while Brent crude prices are trading at $74.38 down by 1.05%, on Wednesday evening.
FII, DII Data
Foreign institutional investors (FII) offloaded shares worth Rs 973.94 crore, while domestic institutional investors (DII) bought shares worth Rs 1,778.99 crore on September 21, 2024, according to the provisional data available on the NSE.
Technical View on Nifty
Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities said that “The Nifty made another lifetime high as bulls seemed in no mood to back down, despite a weak start. The sentiment is likely to remain positive as long as it remains above 25,900, where aggressive put writing was visible.
“Technically, the Nifty has sustained above its very short-term moving average. Furthermore, no reversal is visible in the momentum indicator. Therefore, we might witness a range-bound to positive move in the near term. Resistance on the higher end, is seen at 26200-26250,” Rupak further added.
Whereas Vaishali Parekh, Vice President – Technical Research PL Capital Group said that Nifty has been steadily picking up with strong trend visible and has now breached above the 26000-zone improving the bias with further target of 26400 level expected in the coming days, as mentioned earlier. The undertone has been maintained strong with the broader merkets consistently supporting the benchmark indices maintaining the sentiment intact.
Bank Nifty Outlook
“Bank Nifty currently finds major support at 53,800, with substantial resistance at 54,200. The prevailing trend remains positive as long as the index stays above 53,800, indicating strong underlying momentum. Traders are advised to consider buying on pullbacks near 53,900, with targets at 54,200 and potentially higher. A strict stop loss at 53,800 is recommended to manage risk effectively,” said Riyank Arora Technical Analyst.
Commenting on the same Tejas Shah, Technical Research, JM Financial & BlinkX said that the Bank Nifty was an underperforming sector as compared to Nifty in today’s trading session. However, it closed above the major resistance zone of 53,350-400 (Previous ATH Area) last week and accordingly we expect an upward trending activity to continue and it should move towards the next resistance level of 54,500 either continuously from the current levels or may be after a minor dip. On the downside, the support zone lies at 53,700-800 / 53,300-400 while the resistance is seen at 54,200-250 / 54,500.
Stocks to Watch Tomorrow
ITC: The company has announced the acquisition of 1,413 Compulsorily Convertible Preference Shares (CCPS) in Sproutlife Foods Pvt Ltd for approximately Rs 300 million. The acquired entity operates in the new and innovative food products sector, reflecting ITC’s strategic focus on expanding its footprint in this growing market segment.
Krsnaa Diagnostics: Company has approved an investment in Apulki Healthcare, acquiring a 23.53% stake in the company. Apulki Healthcare is engaged in establishing, operating, and maintaining hospitals, with a focus on oncology and cardiology, aligning with Krsnaa’s expansion into specialized healthcare services.
Adani Green Energy: The Company has reported that promoter Hibiscus Trade acquired a 1.27% stake in the company between July 30 and September 18. Additionally, promoter Ardour Investment purchased a 1.69% stake in the company between September 19 and September 23.
SG Finserve: Company has announced that the Reserve Bank of India (RBI) has approved its proposal for conversion from a Type I to a Type II Non-Banking Financial Company (NBFC), marking a key regulatory milestone for the company’s business operations.
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