A break above 13,777 may take Nifty to 13,924

MUMBAI: The Nifty may transfer towards a brand new excessive of 13,924 if it breaks and sustains above the report excessive of 13,777.50, having come inside kissing distance of it intraday on Thursday, by-product information present. Some analysts usually are not ruling out a dip earlier than the market makes a tryst with a brand new excessive.

Nifty’s vary subsequent week primarily based on the 13,700 name and put worth is 13,476-13,924. The index closed up 1.1 per cent at 13,749.25 on the finish of the vacation shortened week.

The report excessive of 13,777.5 was made on December 21, earlier than the Nifty plunged to 13,131.45 throughout the identical session on fears of a extra lethal Covid variant, which spooked international markets.

From there, the Nifty has recovered and hit an intraday excessive of 13,771.75 on Thursday. The robust closing on the finish of the week suggests extra power, really feel analysts like Abhishek Karande, CMT senior analyst, Reliance Securities.

“There could be a dip before the market moves higher,” feels Karande.

“A strong closing today means the market is consolidating in 13,131-13,777.5 before testing the band’s upper end,” stated Sunil Pachisia, director, institutional gross sales, Pratibhuti Vinihit. “It’s important for a conclusive break above the record for the market to test newer highs.”

Huge intraday put promoting was witnessed at 13,700 and 13,600 strikes expiring on December 31, which underscores the bullish sentiment as sellers count on the market to stay above the put degree bought minus the premium obtained from the put consumers.

December 31 expiry Nifty choices’ put name ratio was 1.49, implying extra put than name promoting, a bullish indicator.

The rally because the March 24 low has been pushed by highest-ever FII flows of ₹2.13 lakh crore within the fiscal 12 months by way of December 23.