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Home >Markets >Stock Markets >Nifty rises to new closing high. Key levels to watch now

Indian stock markets ended at record closing highs today, helped by gains in financials and information technology stocks. A steady decline in daily COVID-19 cases also helped investor sentiment. The blue-chip NSE Nifty 50 index was up 0.24% at 15,337, a new closing high, while the benchmark S&P BSE Sensex settled 0.19% higher at 51,115.22.

Investor sentiment has improved in recent days due to the steady decline in daily COVID-19 cases. Meanwhile, the Reserve Bank of India in its annual report said the economy had not moderated as much as it did during the first wave of the coronavirus, but uncertainties might act as a short-term deterrent and private demand would be key to revival.

Economic growth prospects now essentially depend on how fast India can arrest its second wave of infections, the Reserve Bank of India said in its annual report.

The Nifty Bank Index rose 1.18%, supported by gains in Kotak Mahindra Bank Ltd, State Bank of India and Axis Bank Ltd.

Global markets were muted today as investors awaited US data expected to offer clues on inflation.

Here is what analysts said on today's market performance:

Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments

"The Index has maintained above the 15300 levels today. This should allow the index to move higher to levels closer to 15600. Any intraday correction or dip can be utilized to accumulate long positions on the Nifty. We have good support at the 15000 levels and as long as we do not break this on a closing basis we are in the bull territory!"

Deepak Jasani, Head of Retail Research, HDFC Securities

"Indian benchmark equity indices rose for the fifth consecutive session today. Volumes on the NSE were unusually higher than the recent averages due to F&O expiry and MSCI rebalancing trades. Among sectors, Metals, Consumer Durables, Banks and IT indices did well while Realty was the main loser. BSE Midcap and Smallcap indices ended in the green."

"Nifty continues its gradual march upwards. The high low range of Nifty was less than 100 points and that too on an F&O expiry day. High volumes and lower volatility on the F&O expiry day suggest that the top of this move is yet to happen. 15432, the earlier all time high is the next resistance for the Nifty while 15257 is the support in the near term."

Ajit Mishra, VP - Research, Religare Broking Ltd

"Markets are now eyeing announcements on unlocking by the states which is fueling the recovery. Besides, stability in the global markets after the Fed assurance is also helping the index to sustain at higher levels. We’re currently seeing most sectors, barring metal, participating in the move and expect this trend to continue. Participants should continue with the “buy on dips" with focus on sector and stock selection."

Vinod Nair, Head of Research at Geojit Financial Services.

"Market gained its momentum in the opening hours on hopes of a state-wise unlocking due to declining covid cases. However, RBI’s warning of the risk of a bubble in the equity market in its annual report made the market cautious, forcing it to end flat on the day of the monthly F&O expiry. RBI has noted a disconnect between the market and economy due to Covid. The equity market is valued based on its future earnings growth proposition, which is solid for India today. High liquidity does help the market and RBI has reaffirmed its supportive stance till the economy recovers."

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