NSE Nifty closes at 13,740 pts, logs yet another record high | check outlook by HDFC Securities
The upside momentum with range bound action continued in the market on Thursday, as Nifty displayed choppy movement at the highs and closed the day higher by 58 points. After opening on a positive note, Nifty continued to show gradual upmove with range bound action for the better part of the session. Minor profit booking was seen from a new all time high of 13773 levels towards the end.
Indian equity benchmark indices registered yet another record high in today's session, rising for the fifth consecutive session. The high low range for the Nifty was just 100 points. At close, Nifty 50 index ended 0.42% higher at 13,740.
Volumes on the NSE were below recent averages. Among sectors, Banks and Pharma were the main gainers while Media, PSU Bank and Metals ended lower.
World stocks climbed new peaks and oil marched higher on Thursday as investors bought risky assets in hopes of a U.S. fiscal stimulus and the Federal Reserve's pledge to keep pumping cash into markets. A Brexit deal appears increasingly in focus even as all eyes are now on the Bank of England’s policy rate decision on Thursday.
Nifty continues to make new highs. Sectoral rotation is back in limelight. Intraday reversal of momentum in Burger King dampened spirits to some extent. Advance decline ratio went into the negative suggesting profit taking by traders. Broader markets could continue to be range bound while Nifty could still rise another few hundred points.
The upside momentum with range bound action continued in the market on Thursday, as Nifty displayed choppy movement at the highs and closed the day higher by 58 points. After opening on a positive note, Nifty continued to show gradual upmove with range bound action for the better part of the session. Minor profit booking was seen from a new all time high of 13773 levels towards the end.
Though Nifty closed with the gains on Thursday, the overall market breadth was negative and broad market indices like midcap 100 and small cap 100 of NSE exchange have closed on a flat to minor negative note. This could be a cause of concern for longs at highs.
A small body of positive candle was formed with minor upper and lower shadow. Technically, this pattern indicates a formation of high wave or spinning top type formation at the highs, which apparently looks like reversal of present uptrend. But, the market has been moving up with range bound action and many such patterns have been formed recently and the Nifty continued to scale higher amidst a range movement. Hence, any negative implication arising out of this pattern could be ruled out.
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Although the market looks tired at the highs, the long term charts like weekly and monthly are intact and there is no indication of any reversal forming on the short term charts like daily and 60 min intraday time frame.
Conclusion: The short term trend of Nifty continues to be range bound with positive bias and similar type of movement is expected in the coming session. The upside target for the Nifty remains around 13900-14000 levels which corresponds to multiple long term trend line resistances while the Immediate support is placed at 13660 levels.
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