Nifty formed bullish candle on the daily chart as the closing was higher than opening level.
Nifty continued to form 'higher highs higher lows' for the third straight session.
Nifty opened higher at 15725 and after initial volatility gradually extended gains to hit a record high of 15773. Nifty rallied 81 points to end at record closing high of 15751.
Nifty started off a week on a positive note and remained in an uptrend throughout session to end at record closing high, supported by IT, select banks, auto and FMCG stocks. Positive global cues and further decline in Covid cases with easing restrictions by several states also boosted sentiment.
After moderating for two quarters and moving closer to RBI’s target, CPI inflation will likely accelerate in the coming months Expect it to rise to 5.7% in May from 4.3% in April. The 140bp increase in headline CPI will likely be driven by the combination of a low base effects and a broad-based sequential increase in prices across major CPI components.
Bulls opened the week on a positive note, comfort level seems to be missing in the market, as trading range remained somewhat narrower with 95 points before signing off the session with an indecisive formation.
Though there are no apparent sell signals, at this point in time, narrow trading ranges accompanied with overbought level can be a harbinger of weakness going forward which will be confirmed if Nifty closes below 15611 in next session whereas a close below 15459 can trigger a sharp profit booking.
If bulls manage to push the index beyond 15773 level then the strength shall get expanded towards 15858/15964 level where some resistance can be expected from the potentially.
Traders to remain neutral on index by shifting focus to stock specific opportunities.
Sector Wise:- Metal and pharma indices down marginally, while all other sectoral indices ended in the green. Midcap and Smallcap indices rose 0.7/1.4 percent.