Benchmark indices NSE Nifty 50 and BSE Sensex ended Wednesday’s session in green despite mostly negative global cues. The NSE Nifty 50 gained 40.15 points 0.21% to 18,856.85. The BSE Sensex after touching an all time high of 63,588.31, cut some gains and settled 195.45 points or 0.31% higher at 63,523.15. In sectoral indices, Bank Nifty rose 92.70 points or 0.21% to 43,859.20, Nifty PSU Bank was up 0.44% while Nifty FMCG fell 0.44% and Nifty Metal tanked 0.94%. The top gainers Nifty 50 were Power Grid, ONGC, Adani Ports, HDFC Bank and HDFC while the losers were JSW Steel, Hindalco, Divis Lab, Mahindra & Mahindra and ITC.
“Despite hitting record highs, the domestic market failed to sustain its upward trajectory due to prevailing concerns over global issues and a delayed monsoon. Furthermore, market volatility was exacerbated by consecutive days of net selling by FIIs, while mid-cap stocks maintained their steady gains. Meanwhile, in the global market, sentiments were dampened as UK CPI inflation came in hotter than expected, adversely affecting investor confidence,” said Vinod Nair, Head of Research at Geojit Financial Services.
Where is NSE Nifty 50 headed?
Nifty may rise to 18900-18950 if it holds above 18780
“It’s purely the positive domestic fundamentals that are reflecting in the markets, which drove the Sensex to a new life-time high and pushed Nifty closer towards breaching its previous high. The rally did not gather steam as investors traded with caution ahead of the US Federal Reserve Chairman’s testimony before the US Congress later today. Technically, on intraday charts the Nifty is holding a higher bottom formation, which is broadly positive. For traders, 18780 would be the key support level to watch out for and above the same, the index could move up till 18900-18950. However, a quick short-term correction is not ruled out if the index trades below 18780 and slips till 18720-18700,” said Shrikant Chouhan, Head of Research (Retail), Kotak Securities Ltd.