Nifty formed a bullish candle on the daily chart as the closing was higher than opening level.
Nifty opened higher at 15872 and remained in an uptrend throughout the session to hit an intraday record high of 15952. Nifty jumped 70 points to 15924.
Bulls remained in control to push the Nifty to a record closing high, backed by technology, select banking & financial names, FMCG and metals stocks.
As global investors digest inflation data and the Fed commentary, Dalal Street bulls were seen betting on economic recovery as IT stocks continue to power the Indices to new highs.
Market seemed in no mood to oblige investors waiting on the sidelines for a correction as sector rotation played its part today as capital goods made a smart comeback across market capitalisation. Broader market was buzzing with action across cement, real estate and pharma names.
Indian indices extended their gains to all-time high supported by positive Asian market and rally in realty, IT, financial and metal stocks, in anticipation of robust Q1 earnings and recovery in demand. Asian markets were positive as China reported better than forecasted economic data and the global market was boosted by the accommodative stance in the Fed official’s statement, reducing the risk of change in rates.
Nifty appears to have registered a consolidation breakout, above its range of 15900/15600 level, after a sideways move of 22 trading sessions. Ideally, after such breakouts, the market should witness a sustainable upmove with initial targets of 16289 level.
Technical indicators/oscillators are still in favour of the bears, there are doubts about the sustainability of this breakout. Moreover, this breakout is on the back of a narrow trading range of 98 points on the back of negative advance decline ratio which is a cause for concern.
In the next session, It will be critical that the Nifty stays above 15845 to retain positive bias.
Sustaining above 15900 is the key factor from a short term perspective to gain momentum and extend the rally until 16289.
As there is a breakout on the price chart, Traders should remain long with a stop below 15845 and look for an initial target of 16289 level.
Sector Wise :- Nifty Realty jumped over 4 percent, followed by Nifty IT which rose over a percent. Auto, PSU bank, pharma and media indices ended lower.