Not only Nifty but also Sensex ended at record closing high of 36,984.64, up 126.41 points. Even the entire July series was strong for the market as the Nifty and Sensex rallied 5.5 percent each.
The Nifty50 after opening higher finally hit fresh record high for the first time since January 29 and ended at all-time closing high on the day of July F&O contracts expiry Thursday, though it dropped in the red in last hour of trade.
The index formed small bullish candle on the daily charts. The market shrugged off weakness in Asian peers.
The rally was majorly driven by banking & financials space as the Nifty Bank index gained 1.4 percent and Financial Services 1.7 percent. PSU Bank gained the most among sectoral indices, rising 5.5 percent, especially after Canara Bank earnings.
Not only Nifty but also Sensex ended at record closing high of 36,984.64, up 126.41 points. Even the entire July series was strong for the market as the Nifty and Sensex rallied 5.5 percent each.
The 50-share NSE Nifty opened higher at 11,132.95 and immediately in the first few minutes it clocked fresh record high. The index in last lost hour of trade lost all its gains and hit an intraday low of 11,125.70, but immediately regained strength and hit an intraday all-time high of 11,185.85. It closed 35.30 points higher at 11,167.30.
“Finally new life time highs greeted Nifty50 as it registered intraday record high of 11,185 before signing off the session with small bullish candle,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.com.
Despite rangebound move of last two sessions things still look positive for the index as pointed out by Thursday’s intraday price behaviour as market recouped all the intraday losses in the last one hour and went on to close near the highest point of the day suggesting it is turning into buy on dips mode, he said.
He further said sustaining above 11,113 levels Nifty50 can initially target 11,241 and then eventually it should head towards 11,500 levels.
As Bank Nifty, which was languishing for last 10 sessions, registered a decisive breakout shall keep the index afloat for further upswing towards bigger targets, Mohammad feels.
Hence, traders are advised to hold their long positions with a stop below 11,100 closing basis and should make use of dips to create fresh longs, he said.
Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan feels once the index closes above 11,172, the bulls are likely to take charge.
On the way down, 11,113–11,078 will be a crucial support zone in the near term, he feels. “Any minor pullback towards the support zone shall be considered as buying opportunity. The short term outlook remains positive as long as it does not close below 10,850.”
