Markets gain for 4th day in a row: Nifty crosses 18,700 mark after a gap of six months
2 min read 07 Jun 2023, 08:38 PM ISTNifty is now just 0.86% short of its all-time highs of 18,887.60, which it had scaled in last December
PremiumHelped by positive global cues, the markets on Wednesday gained for 4th trading session in a row. Nifty, with gains of 0.68%, crossed the 18700 level for the first time in the last six months and closed at 18,726.40. Notably Nifty is now just 0.86% short of its all-time highs of 18887.60, which it had scaled in last December. Sensex too with gains of 0.56%, rescaled the 63000-mark closing at 63,142.96.
For the markets the positive sentiment carried over from the US markets, which had closed higher during the previous trading session. The hopes are also building on China stimulus to provide a push to the Chinese economy. The weak Chinese trade data however added to concerns on its impact on global demand, said analysts. In the meanwhile, the expectations remain high for RBI maintaining pause on rate hikes as inflation data remains favorable. The Foreign portfolio investors bought a provisional of Rs 1,382.57 crore. Domestic Institutions too bought a provisional of Rs 392.30 crore on Wednesday.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd said that the markets rallied sharply and witnessed broad-based buying support ahead of the credit policy with the Sensex ending past the crucial 63000-mark. Upbeat move prevailed throughout the session as investors are hoping for a rate hike pause amid improving domestic macroeconomic situation.
Chouhan added that all eyes will be on the RBI’s growth outlook and inflation projection for the year, and in case there is any downgrade in inflation expectations, optimism is likely to persist.
Buying in heavyweights helped the gains in the index while FMCG, realty, metal, and oil and gas indices were the top gainers. Most other sectors also ended the day in green and . Broad market indices rose more than the Nifty as both the midcap and smallcap index gained over a percent each.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd said that Nifty has managed to cross the 18700 mark after a gap of 6 months (last touched in December’22) and is just 160 points away from its life high of 18,888. Markets are gradually inching higher along with a lot of action in the mid and small-cap space. Khemka expects the northbound journey to continue in the index on back better than expected macro data and supportive global cues. Rural and agri-related stocks are likely to be in focus with the arrival of monsoon in India, which is expected to be normal this year, added Khemka.
Nifty has finally surpassed the hurdle at 18,700 but the prevailing underperformance of the banking pack is still weighing on the sentiment, said Ajit Mishra, SVP - Technical Research, Religare Broking Ltd. Mishra said that we may see choppiness due to the outcome of the MPC’s policy meet and scheduled weekly expiry on Thursday. Amid all, we reiterate our positive view and suggest focusing on identifying opportunities from the leading sectors, added Mishra.
Meanwhile Rupee ended the day with gains of 5 paisa at 82.54 to a dollar on wednesday ahead of RBI MPC outcome On Technicals Rupak De, Senior Technical analyst at LKP Securities said the Nifty has recently experienced a positive breakout from a sideways pattern, which is seen as a favorable development. This breakout comes just before the Reserve Bank of India (RBI) announces its rate decision tomorrow and market participants are anticipating a dovish stance from the RBI governor, contributing to a positive sentiment in the market. Technically, support for the Nifty is positioned at 18650, while resistance is expected around the range of 18880-18900, said De.
"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!
