Nifty formed a bullish candle for the second consecutive day.
After a positive start, Sensex briefly slipped into the red in the early hours of trade. However, it bounced back, adding gains to top the 59000 mark for the first time and making a fresh peak of 59204. Nifty made a fresh peak of 17644 in intraday trade.
Sensex closed up 418 points, at 59141 while the Nifty settled at 17629, up 110 points or 0.63 percent. Market extended gains into the third consecutive session.
Midcap and smallcap indices also hit fresh record highs of 25384 and 28456, respectively, in intraday trade. Midcap index closed 0.48 percent higher at 25336 while the smallcap index closed 0.08 percent up at 28306.
Generally seen that when an underperformer makes a much-awaited up-move, it creates a feel-good effect on others. Ahead of the operationalisation of the NARCL, banks provided the much-needed ammunition to the bulls to notch up record highs of 59000 for the Sensex. The charge of the energised bulls took India's market capitalisation ahead of France as PSU banks lent the firepower.
Driven by reforms, Indian market kept raising its bar and traded to new record highs. Today’s market rally was driven by strong buying in banking stocks, especially in PSBs.
Banking sector is expected to perform well in the coming days as the sector, which failed to fairly participate in the ongoing rally due to fear over asset quality, is gaining traction.
Despite weak Asian cues, domestic investors continued to bet big on Indian markets as recent data points showed steady economic revival is on track.
Nifty formed a robust breakout continuation formation and the short-term trend is extremely strong.
Nifty has further shifted its support to 17565/17500 zone.
Holding above these level, one can expect the index to trade with a positive bias and any dip near this mentioned supports will be again fresh buying opportunity. Fresh resistance is coming near 17700/17750 zone and overall, one can expect the index to towards 18000 mark.
For the day Traders, 17540/17580 level would be the key support level to watch out for. Above it, the uptrend formation will continue up to 17690/17750 level. On the flip side, Nifty would be vulnerable if it slips below 17540.
Sector Wise :- Nifty PSU Bank index jumped 5.43 percent while the Nifty Private Bank index clocked a gain of 2.67 percent. Nifty Bank index rose 2.22 percent.