Nifty Ends at Three-Week High as IT, PSU Banks Lead Rally

Mr. Nandish Shah - Deputy Vice President, HDFC Securities

After one session of pause, Nifty resumed its uptrend by rising 142 points to close at 26052. After initial dip, Nifty kept on building strength throughout the session with higher tops and higher bottoms on intraday basis. Market activity, however, dropped sharply, with NSE's cash market turnover falling 16 percent compared to the yesterday.

Among Nifty constituents, Max Healthcare along with IT heavyweights HCL Tech and Infosys posted the highest gains, while Tata Motors Passenger Vehicles, Coal India, and Maruti faced selling pressure, leading the list of laggards.

Except for the Nifty Oil & Gas, Realty, and Media indices, all major sectors closed in positive territory. IT, PSU Banks, and Bank Nifty emerged as the session's major gainers.

The broader market exhibited a mixed performance as the Nifty Midcap 100 rose by 0.21%, while the Nifty Smallcap 100 ended with a 0.43% loss. Market breadth remained weak for the fifth consecutive day, with decliners outnumbering advancers, reflected by an advance-decline ratio on the BSE of 0.79.

The Indian rupee continued its rally for the fourth consecutive day, appreciating by 2 paise against the dollar to close at 88.59. This strengthening is chiefly attributed to optimism surrounding the US-India trade deal, easing crude oil prices, and stronger equity markets.

By surpassing yesterday's high of 26029, Nifty has negated the bearish formation of "engulfing" candle. With the index now approaching the critical resistance at 26,100, a decisive breakout above this level could pave the way for fresh all-time highs, surpassing 26,277. On the downside, today's low of 25,856 now serves as immediate support, with the next key level to watch at 24,740.

Source : Equity Bulls

Keywords

HDFCSecurities MarketCommentary WrapUp Nifty IT PSU Banks