Nifty to Hit All-Time High Soon? - Post-Market Analysis

NIFTY started the day at 19,774 with a gap-up of 47 points. After an initial down move till yesterday’s closing, the index moved up gradually to 19,870 levels. Nifty closed at 19,819, up by 92 points or 0.47%.

BANK NIFTY (BNF) started the day at 44,953 with a gap-up of 75 points. After consolidating near the opening levels, the index gave a breakout from the important resistance of 45,000 and moved up 400 points to 45,380 levels. BNF closed at 45,156, up by 469 points or 1.06%.

All other indices except Nifty Realty (+2.12%), Nifty Auto (+0.67%), and Nifty PSU Bank (+0.32%) closed flat-to-red. Nifty Media (-0.97%) fell the most.

Major Asian markets closed up to 1.3% in the red. European markets are currently trading in the red.

Today’s Moves

Coal India (+2.96%) was NIFTY50’s top gainer. The stock has surged nearly 22% in a week!

Stocks related to the power sector were in high demand today. NTPC (+2.63%), PFC (+12.23%), REC (+10.02%), and Tata Power (+1.95%) moved up.

Sobha (+10.89%) jumped after HDFC Securities said it expects a potential upside of around 66% in the stock over the next 12 months.

Eicher Motors (-0.93%) was NIFTY50’s top loser. 

Natco Pharma (-3.5%) fell after the company was named a defendant in an antitrust lawsuit in the U.S.

Markets Ahead

As discussed earlier, the markets have turned bullish and buy-on-dips can be planned. The targets of 19,840 in Nifty and 45,370 in Bank Nifty were hit, and the bullishness could continue till immediate supports are breached.

Nifty: The index is near a very important resistance zone of 19,850-870. A breakout from this level can take the index to the all-time high (ATH) of 19,990 levels. Now, the important support zone for Nifty will be the previous swing of 19,730 levels. A breakdown from there with a re-test may take the index down to 19,680 and 19,630 levels.

Bank Nifty: The index finally broke out. Now, the immediate support to watch out for will be 45,150. A breakdown from there can take the index down to 45,000 and 44,800 levels. The immediate resistance would be 45,350. A breakout from that level can give us targets of 45,740.

The indices are on a strong uptrend. Many market participants are likely to buy during price dips, aiming to push the markets higher. This strategy is expected to continue until the key breakout levels of 19,640 in Nifty and 45,000 in Bank Nifty are maintained.

Meanwhile, global markets have stabilized today, while the U.S. Dollar appeared to be on its longest winning streak since 2014, thanks to a strong U.S. economy. Investors are anticipating that central banks will keep interest rates unchanged in the next two weeks.

How did this week go? Are you in net profit or loss? Let us know in the comments section of the marketfeed app.

Don't forget to tune in to The Stock Market Show at 7 PM on our YouTube channel!