Analyst Somesh View - Closing Comments on 23rd SEP 2021

2021-09-23 19:10:56 By Somesh


Nifty formed a bullish candle on daily chart and is forming higher highs higher lows on daily chart.

Nifty rallied over 1.5 percent and formed a bullish candle on the daily chart as the closing was higher than the opening level, indicating the gradual march towards the 18000 mark now.

After a lackluster move in the previous session, Market registered a smart rally on with benchmark indices hitting fresh record high level on the back of positive global cues and broad-based buying.

Market took the US Fed statement of starting tapering as soon as November in its stride. Encouraging news on Evergrande crisis also helped to clear some uncertainty on the global front.

Markets have been on a roll & the rally today was symbolic of the prevailing strong sentiment locally on the back of reduction in covid cases & the strong vaccination numbers. With improvement in economic activity & the optimism around the capex cycle revival, the earnings trajectory for India Inc will naturally get a big boost. 

Amidst a strong start, Bulls showed no signs of weakness to soar higher boosted by strong global cues and broad based buying led by realty, Metal and banking stocks. Global markets tempered optimism despite a slightly hawkish tilt by the Fed Reserve intimating that the US Central Bank will begin reducing its asset purchases in November and conclude the tapering process around mid-2022. 

However, Investors continue to remain on the edge awaiting clarity on the Chinese economy. Domestic reality sector continued its rally sparked by demand revival in the property space.

Most of the companies which are market leaders in their respective domains have seen operating efficiencies & productivity improve & also been able to reduce debt with prominent gain in market share as well. Liquidity remains extremely strong, be it Foreign portfolio investors, Local mutual funds, Insurance companies, Family offices, HNI’s or even the retail investors.

Market witnessed some positive movements after it was able to sustain the Nifty Index level of 17500. Research shows it sustaining above 17850, and the market is expected to gain momentum, leading to an upside projection till the 18000 level. Momentum indicators like RSI and MACD are likely to stay positive and the market breadth will improve, further strengthening a short-term bullish outlook.

Index witnessed a decisive breakout and closed a day at 17823 with good gains of one & a half percent forming a bullish candle on the daily chart. Index has witnessed a range breakout which hints if current level are held then we may witness next quick move towards 18k mark.

Nifty is shifted to 17770/17700 zone and any dip near mentioned supports zone will be again buying opportunity with keeping immediate stop out level below 17700 zone and if said level are held we may see the index to march towards 17900/18000 zone, which is immediate hurdle zone on the higher side.

It will be important to see global markets' behavior from here and if they remain calm then our market may continue its outperformance where 18000 & 60000 are the psychological hurdle for Nifty and Sensex respectively, however, if global markets start to fall once again then we can expect profit booking in our market as well.

Sector Wise :- Realty index gained nearly 9 percent, while IT, metal, bank, capital goods, oil & gas indices rose 1 percent each.

Closing Comments

Expert's View

ఇన్వెస్టర్లకు ఎనలిస్టుల "దసరా మాములు" స్టాక్ రెకమెండేషన్స్