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Home >Markets >Stock Markets >Nifty closes in on 17,000 as bulls take charge. But analyst say Nifty Bank looks ‘more promising’

Indian stock market benchmarks Sensex and Nifty surged today to end at record highs, with sentiment also supported by dovish commentary from US Federal Reserve chairman at the Jackson Hole Symposium. The NSE Nifty 50 index ended 1.35% higher to 16,931 to extend gains to the sixth session in row, while Sensex rose 765 points to 56,889. Both indexes clocked their best session in nearly a month. The broader market indices, BSE midcap and smallcap, too ended with healthy gains in the range of 1.5-1.9%.

"Following a strong gap-up opening, equity benchmark indices maintained the trend throughout the day in line with the strength in global markets. Global markets strengthened as the anxiety over the Jackson Hole symposium subsided following the dovish tone of the Fed Chair. Jerome Powell stated to stick with the wait-and-see approach giving reassurance that the easy money policy will continue this year with a smaller rate of tapering," said Vinod Nair, Head of Research at Geojit Financial Services.

Banking stocks led the gains today with Nifty bank index rising 2% to 36,347. Though Nifty has been hitting new highs, Nifty Bank index is still at a distance from its record high of 37,708.

Rahul Sharma, Co-Founder of Equity99, said, “Bank Nifty looks more promising after a long consolidation is coming out of range and with strong volumes we are witnessing big momentum in the index, on hourly charts we have seen huge breakout near 36200 levels. Now 36200 will act as strong support followed by 36000 & upside hurdle is placed at 36550 followed by 36750 amd 36900 levels."

Bharti Airtel was the top gainer in the Sensex pack, rallying over 4 per cent, followed by Axis Bank, Tata Steel, Titan, Maruti and Bajaj Finance. Bharti Airtel shares jumped after the telecom operator said it plans to raise up to 21,000 crore through a share sale.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said, “The short term trend of Nifty continues to be positive. Having reached nearer to our upside target of 17K mark, there is no sign of any tiredness at highs and the market is ready to move above 17000 levels in the coming sessions. A sustainable move above 17K could open the next upside target of around 17500 levels in the next two weeks. Immediate support is placed at 16750 levels."

Global stocks hovered near record peaks after U.S. Federal Reserve Chair Jerome Powell said Friday that the tapering of stimulus measures could begin this year, but that the central bank would remain cautious. (With Agency Inputs)

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