Sensex holds 60,000, midcap, smallcap stocks fall; Nifty to rally further next week

For upcoming session, index has shifted its support zone to 17750-17650 so any dip near mentioned support zone will be again fresh buying opportunity. Image: Reuters

BSE Sensex and Nifty made record closing highs, even after they erased early gains partially on Friday. BSE Sensex surged 163 points or 0.27 per cent to end at 60,048, while the Nifty index gained 30 points or 0.17 per cent to settle at 17,853. During intraday, the 30-share Sensex hit a historic high of 60,333, while the Nifty 50 index surged to a fresh lifetime high of 17,948. Index heavyweights such as HDFC Bank, Infosys, Asian Paints, ICICI Bank, among others contributed the most to the indices’ gain. Broader markets underperformed equity market benchmarks. S&P BSE MidCap fell 1.16 per cent or 295 points to 25,194, while the BSE SmallCap index lost 0.30 per cent or 86 points to settle at 28,023. Analysts say that Nifty 50 is all set to hit the 18,000 level.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

Trading was mostly range-bound with a positive bias but the highlight of the trade was Sensex breaching the psychological 60000-mark. Benchmark Nifty has formed a robust higher high and higher low formation which is broadly positive. The important point is the index successfully cleared the resistance of 17800 and is comfortably trading above the same. For the index, 17775-17700 could be the important support levels. On the flip side, 18000 and 18200 could act as a major resistance level. Contra traders can take a long bet near 17700 with a strict 16650 support stop loss, while partial profit booking is advisable between 18100 to 18200 level. Meanwhile, the Bank Nifty has maintained a higher bottom formation. The key support levels are placed at 37200 followed by 36800. The structure suggests a further upside if it succeeds to trade above 37200

Rohit Singre, Senior Technical Analyst, LKP Securities

Index closed a week at 17853 zone with gains of one & half percent on weekly basis and formed a bullish candle on the weekly chart for a second consecutive week. For upcoming session, index has shifted its support zone to 17750-17650 so any dip near mentioned support zone will be again fresh buying opportunity with keeping stop out level below 17650 zone & if said levels are held we may see the index march towards 18k mark, resistance is still placed around 17900-18000 zone where traders can lock some of their long gains.

Aashish Somaiyaa, Chief Executive Officer – White Oak Capital

Market levels are just incidental. All time highs (ATH) don’t mean much because every ATH is preceded by a series of ATHs and I am sure it will be succeded by many more to come. We continue to ask our clients to remain fully invested, irrespective of the levels as market timing is a futile exercise. 2010 to 2020 saw series of false starts in the markets coupled with multiple economic disruptions which has made 2021 hard to believe for most stock market participants but if globally supportive macro conditions persist and India continues to stand out on relative merit in light of our Government’s reform approach, one can believe this market has legs. The surge of FII inflows (US$ 38bn) into India since April 2020 suggests that foreign investors continue to place confidence in India’s diverse corporate universe with it’s alpha opportunities.

Palak Kothari, Research Analyst, Choice Broking

On a technical front, the Index has been trading with Higher High & Higher Bottom formation on a daily time frame from the last few days, which indicates strength for the upside. Furthermore, the Index has been trading above all the moving averages as well as Momentum indicator Stochastic is also trading with positive crossover which further adds strength in the counter. At present, the nifty seems to have psychological resistance at 18000 levels though crossing above the same can show 18200-18250 levels while immediate support comes at 17650 levels.

Mohit Nigam, Head – PMS, Hem Securities

Sensex scales Mount 60000 today; both Nifty 50 and Sensex ended at fresh record highs in a volatile trading day today after paring early morning gains. Markets have sustained above 17,850 levels and we expect this momentum to continue which may lead Nifty50 to 18,000 levels in near term. 17,650 may act as immediate support in Nifty 50. Overall we believe that market trajectory continues to be positive and any significant dip should be utilized to invest in quality stocks for good returns.