Dalal Street Corner: Nifty50 reclaims important level of 17400; what should investors do on Friday?
The Indian markets have closed on higher notes as the Sensex jumped over 775 points and the Nifty50 reclaimed 17400-mark for the first time in 9 sessions.
Surging for the second-straight session on Thursday, the Indian markets have closed on higher notes as the Sensex jumped over 775 points and the Nifty50 reclaimed 17400-mark for the first time in 9 sessions.
Even the broader markets followed the same suite of benchmarks as mid-cap surged over 1 per cent and small-cap up 0.6 per cent at the market close today. Similarly, the Nifty Bank, one of the important contributors to the Nifty50, also witnessed buying interest in the last hour trade, up 0.4 per cent.
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The market has been soaring amid multiple positive triggers, from positive global cues to November auto sales to robust Q2 economic growth numbers. While Omicron, a new covid variant, fears still prevail with the majority of countries being impacted.
As many as 47 advanced and 3 declined on the Nifty50 at the market close on Thursday. In the last hour trade, Adani Ports jumped over 4.5 per cent, followed by Power Grid up over 4 per cent. On the contrary, Cipla ended as the top loser in an otherwise positive market, down around 1 per cent.
The three initial public offers are active on Thursday, with its last day for Star Health, which is merely subscribed around 70 per cent, followed by Tega Industries massive response than all three, and Anand Rathi, which has been opened today and getting traction on the first day itself.
"Irrespective of the weak sentiments in the international markets, domestic indices continued to rise due to gains in IT, financials, and metal stocks amid strong domestic macroeconomic data, says Vinod Nair, Head of Research at Geojit Financial Services in a post-market comment on Thursday.
He added, “Fed Chair’s remarks stating a possibility of a faster end to the bond-buying programme and interest rate hike along with the first confirmed case of the Omicron variant in the US, triggered a fresh global sell-off.”
Similarly, “The Union government’s fiscal deficit of 36.3 per cent of budget estimates in October, is better owing to improved revenue collection,” the market analyst said in his comment.
Vijay Dhanotiya, Lead of Technical Research at CapitalVia Global Research Limited explained, “The market research suggests that sustaining above 17200 Will be an important level for the market to stay positive in the short term.”
“If the market is able to sustain the level of 17200, it can witness a positive momentum in the market which can lead to the higher levels near 17600. The momentum indicators like RSI and MACD indicating positive momentum in the market,” he added in his post-market comment.
Similarly, Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services Limited pointed out, “Nifty index opened positive and buying interest kept the market buoyant taking it above 17400 zones.”
“It formed a Bullish candle on a daily scale and has been making higher lows from the last three sessions. Now it needs to continue to hold above 17350 zones for an up move towards 17500 and 17777 zones whereas support can be seen at 17150 and 17000 zones,” Taparia added.
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