The benchmark equity index Nifty 50 ended Tuesday’s trading session in positive territory after the bulls took the index to a new all-time high of 22,215.60. The NSE Nifty 50 closed 74.70 points or 0.34% higher to settle at 22,196.95 points. While S&P BSE Sensex advanced nearly 350 points or 0.48% to settle at 73,057.40 points. Nifty Bank inched 558.70 points or 1.20% higher to settle at 47,094.20 points.
On the sectoral front, media and bank stocks gained the most amongst their peers. The broader indices ended in the green, with largecap and midcap stocks gaining the most. Bucking the trend, the Nifty Midcap 100 slipped nearly 63 points or 0.13% to close the day’s trading at 49,248.45.
The losers on Tuesday include Hero MotoCorp, Coal India, Bajaj Auto, Eicher Motors, and TCS. The Indian Volatility Index (India VIX) closed 0.31% higher.
“The latest upward trajectory is bolstered by gains in the banking sector, with private banks witnessing a rebound from a recent sharp correction. However, the decline in mid- & small- caps suggests that investors are continuing to exercise caution due to higher valuations. The forthcoming release of the US Fed minutes this week holds significance, particularly in light of recent sticky inflation data, which raises uncertainty regarding the timing of the Federal Reserve’s initiation of its easing cycle,” said Vinod Nair, Head of Research at Geojit Financial Services.
“On the daily charts, we can observe that the Nifty has decisively closed above the previous resistance zone of 22100 – 22150 which indicates that the next leg of upmove has resumed. On the upside we expect Nifty to target levels of 22500, which is the upper end of the rising channel. Bollinger bands have begun to expand, and prices are trading along the upper band indicating that the positive price action is likely to continue. The hourly momentum indicator still has a negative crossover, which is a point of worry, however we shall assign more weightage to the price action and continue to ride the upmove. In terms of levels, 22460 – 22500 is the immediate hurdle zone while 22000 – 21950 shall act as a crucial support zone,” said Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas.
On the Bank Nifty’s outlook, the analyst with Sharekhan said that the Bank Nifty is expected to continue with the momentum and target levels of 48600.