Sensex, Nifty Post Record Closing Highs After One-day Blip On F&O Expiry; Nifty Eyes 17,450 Target now?

Nifty again showed positive move and closed a day at 17233 with gains of nearly one percent forming a bullish candle on the daily chart. Image: Reuters

BSE Sensex and Nifty 50 resumed record closing high spree after a day’s blip on the weekly F&O expiry day. BSE Sensex ended up 514 points or 0.90 per cent at 57,852, while NSE’s Nifty 50 index settled at 17,234, up 0.92 per cent. Index heavyweights such as Tata Consultancy Services (TCS), Reliance Industries Ltd (RIL), Hindustan Unilever Ltd (HUL), Housing Development Finance Corporation (HDFC), HDFC Bank, Kotak Mahindra Bank contributed the most to the indices’ gain. India VIX, the volatility index, gained 0.4 per cent to settle at 14.24 levels. Broader markets gained in line with equity benchmarks. BSE MidCap gained 0.93 per cent or 225 points to end at 24,297.51. BSE SmallCap index surged 0.80 per cent or 215 points to settle at 27,195.12.

Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities

Markets were back in action after yesterday’s small correction and benchmark Nifty found support near 17050 level. After a muted opening the index successfully cleared the intraday resistance of 17150 and is comfortably trading above the same which is largely positive. The intraday rally indicates further uptrend from the current levels but the market has formed a double top kind of formation. For the trend following traders, 17150 would be the key support level, and above the same the uptrend structure could continue up to 17300-17350 levels. On the flip side, if the Nifty slips below 17150, it may trigger a quick intraday correction till 17100-17075 levels.

Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty reversed the losses of the previous day and closed at another record high on Sept 02. Nifty opened gap up and kept rising through the day to close almost at the intraday high. At close Nifty was up 157.9 points or 0.92% at 17234. Nifty reversed the losses of the previous day and nullified the bearish signal. The advance decline ratio has improved to much above 1:1. FPIs seem to be in a mood to keep buying Indian stocks. The Nifty keeps breaching resistances one after the other in fresh territory. Nifty could now stay in the 17340-17154 band for the next 1-2 sessions.

Vinod Nair, Head of Research, Geojit Financial Services

Domestic indices nudged higher tracking cues from positive economic data, FII buying and mixed global markets ahead of the release of US job data. Economic data is nudging the performance of core sectors like capital goods & industrials while the recent high performance of the market is also tempting investors to shift to safer defensive sectors. All major sectors followed the market trend while the auto sector lost ground due to weak sales.

Rohit Singre, Senior Technical Analyst at LKP Securities

Index again showed positive move and closed a day at 17233 with gains of nearly one percent forming a bullish candle on the daily chart. The index has shifted its support to 17175-17050 zone if managed to hold above-said levels we may see more northward moment in coming sessions also dips around said levels will be again fresh buying opportunity and if failed to hold then we may see good profit booking still make or break level is at 17k mark, on the higher side strong hurdle is coming near 17300-17350 zone.

Ashis Biswas, Head of Technical Research at CapitalVia Global Research

The market witnessed the continuation of a positive trend, after sustaining above the level of 17100. If the market sustains above the level of 17200-17250, it is expected that the market to gain momentum, leading to an upside projection till 17400-17450 level. The momentum indicators like RSI and MACD to stay positive and market breadth to improve, further strengthening a short-term bullish outlook.

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