Nifty formed bullish candle on the daily chart as closing was higher than opening levels. It continued its winning streak of forming higher highs in the last nine trading sessions.
Nifty opened lower at 14075 and hit a day's low of 14048 amid volatility, but gained momentum in the last couple of hours of trade and hit an intraday record high of 14215. Nifty rose 66 points to close at 14199.It moved northwards throughout the day and hit a new record lifetime high of 14215 in the last hour of the session.
Supports are gradually shifting higher and dips are being bought in which indicates dominance of the bulls.
Nifty gained strength in the last couple of hours of trade and marked another record closing high despite mixed global cues backed by banking & financials and IT stocks.
Bulls put to rest worries across Europe on account of the lockdown as IT & Financials led the charge in afternoon trade. The broader market witnessed a renewed interest in insurance stocks and several small & midcap names across sectors were seen buzzing around.
Markets are showing tremendous resilience on every dip but still lack decisiveness. We feel the global COVID situation and progress of the vaccine drive would remain in focus, at least in the near future. On the domestic front, the start of the Q3FY21 earnings season would hold importance as expectations are high this time around especially for consumption names as high-frequency indicators have pointed towards a healthy recovery in demand. Amid all, we reiterate our positive yet cautious stance on markets and suggest sticking to fundamentally sound stocks.
Nifty once again witnessed buying on dip which is handsomely paying the bulls. Hence, in next trading session if bulls manage to float the index above 14200 level then eventually it should expand the upswing into the zone of 14400/14500 level.
As momentum seems to be on hyper bullish mode, any dip in next sessions towards 14100 level can be considered as an opportunity to create fresh long side exposure.
As in the near term 13950 appears to be the critical short term support, weakness in the index shall not be expected unless the said level is breached on closing basis.
Traders to continue with the strategy of buying intraday dips and should refrain from shorting unless Nifty closes below 13950 level.
Among sectors, BankNifty and IT indices rose 1.5-2.5 percent, while selling seen in the metal and energy names.