Sensex, Nifty hit fresh life-time highs amid strong global cues; bullish tone intact, say analysts

Benchmark indices Sensex and Nifty continued their bull run to hit fresh all-time highs of 74,245 and 22,523, respectively on March 7 early trade amid strong cues overseas.

Global markets gained after Federal Reserve Chairman reiterated possibility of rate cuts in 2024, but refrained from sharing any timeline.

With this bullish sentiment intact, market experts expect Nifty to continue its record run over the next few sessions.

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"As Nifty is in uncharted territory, it would be challenging to forecast resistance. But with the strong bullish candle formation, 22,600-22650 is likely to be seen as the next potent resistance for the index in the comparable period," said Sameet Chavan, Head Research, Technical and Derivative - Angel One.

On the other hand, Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher said that Nifty can march up to 22,700-23,000 levels. "The support for the day is seen at 22,350, while resistance would be seen at 22,600," she added.

Broader markets also joined the rally as Nifty Midcap 100 and Nifty Smallcap 100 indices jumped up to 0.6 percent in morning trade. Fear gauge, India VIX, meanwhile was cooled off marginally to trade around 14 level.

Sectorally, Nifty Metal index was the top performer as it gained over a percent led by Tata Steel, JSW Steel, SAIL, Jindal Steel, and NALCO. On the flipside, Nifty Auto index was the worst sectoral performer as it dropped 0.5 percent weighed by losses in M&M, MRF, Motherson Sumi, TVS Motor.

Global markets strong; Rate cuts possible in 2024, says Fed Chair

Globally, all major averages in the US markets rejoiced overnight after Federal Reserve Chairman Jerome Powell signaled to cut interest rates this year, reiterating officials focus on inflation goal of 2 percent.

Dow Jones, tech-heavy NASDAQ Composite, and the S&P 500 indices gained up to 0.5 percent on March 6. Against this, the US treasury yields and dollar dropped.

The 10-year treasury yield fell nearly 3 basis points (bps) to 4.1 percent, while the US dollar index, which acts like a greenback other six other currencies, declined to its lowest level since early February.

Meanwhile, several Asia-Pacific stock indices also hit record highs this morning. Japan's Nikkei 225 hit all-time high of 44,472, while broad-based Topix hit a fresh high of 2,75, and Australia's S&P/ASX 200 scaled to new life-time high of 7,767

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