Nifty climbs Mount 13K, Nifty Bank near 30K. What analysts say2 min read . Updated: 24 Nov 2020, 06:13 PM IST
- Nifty has gained about 12% so far this month
- Financial stocks led the gains today with Nifty Bank index rising about 2.5% to 29,737.
India's stock market benchmarks closed at record highs today, with the benchmark Nifty50 index topping the 13,000 level for the first time. Signs of progress on a coronavirus vaccine spurred hopes of a faster economic recovery. The Nifty closed 1% higher at 13,055.15, while the Sensex ended 1.01% higher at 44,523.02.
The Nifty has gained about 12% so far this month on the back of upbeat vaccine trial results and strong inflows from foreign institutional investors (FII). Monthly FII inflows this month has topped ₹50,000 crore.
Financial stocks led the gains with Nifty Bank index rising about 2.5% to 29,737. HDFC Bank and ICICI Bank were among the top gainers in Nifty 50, rising 3.5% and 2.3%, respectively.
“Indian economy is recovering well. Credit growth also has started picking up. Electricity consumption, PMI, GST collections, and Eway bill data has been quite encouraging. With the road map for vaccination clearing, the economy will be back to full steam in 2021. The prospects ahead look quite encouraging as demand across sectors has started to look promising," said B Gopkumar, MD & CEO, Axis Securities.
The reset has had challenges, but it has also brought forth good opportunities, and corporates across the country are gearing to cash on them. So, even though markets are at an all-time high, but the risk to rewards still appear promising for the patient long term investors."
Global markets were also higher on Tuesday after U.S. President-elect Joe Biden was given the go-ahead to begin his White House transition.
Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking
"Finally 13,000 has become a reality and now next immediate levels to watch out for would be at 13100-13200. Today’s upmove was mainly propelled by the financial stocks as we saw Banking index inching closer to its milestone of 30000. The undertone remains bullish but as a momentum trader, taking some money off the table should be considered as a healthy practice. The support base now shifts higher around 12800-12730; before which, intraday supports are at 12980-12900 for the coming session."
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
"The upside momentum in Nifty seems to have picked up with a sustainable upside above the hurdle of 12970 levels. Further decisive upmove could have a sharp positive impact on the market and that could open the next upside targets of around 13500-13600 levels in the near term. Immediate support is now placed at 12950."
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
"The Nifty remained solid throughout the day keeping well above the 13000 levels. 13100-13200 can prove to be a resistance zone which could see some profit booking. Since the overall trend of the market continues to remain bullish, traders should focus more on the long side of the market than the short side."
Ajit Mishra, VP - Research, Religare Broking Ltd
"Markets are celebrating the successful vaccine trials, ignoring the recent spike in the cases. Indications are in the favour of the prevailing up move to extend further but the pace could be gradual. We reiterate our view to focus on the selection of sectors and stocks as we’re seeing rotational buying across the board."