Nifty has been gaining strength and is inching closer towards its life high of 19,992, says Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services
Published Date – 12:40 PM, Sun – 10 September 23
New Delhi: Nifty has been gaining strength and is inching closer towards its life high of 19,992, says Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.
With monsoon gradually improving and India hosting G20 summit over the weekend, sentiments are buoyant and may lift market towards its life high and 20K mark over the next few days, he added.
Rupak De, Senior Technical analyst at LKP Securities said the Nifty displayed strength, primarily driven by strong demand for large-cap stocks. The overall trend remained robust as the index consistently stayed above a critical moving average. However, a significant hurdle for the Nifty came in the form of substantial Call writing at the 19,900 strike price.
Looking ahead, only a decisive move above the 19,900 level has the potential to propel the index towards the 20,200 mark. On the flip side, there was substantial put writing at the 19,700 level, providing strong support for the Nifty, he said.
Vinod Nair, Head of Research at Geojit Financial Services said domestic indices experienced a gradual rally throughout the week, buoyed by strong domestic macroeconomic data such as robust GDP and PMI figures, which painted a positive outlook for the domestic market. Despite a mixed global trend marked by weak cues, Indian equities remained resilient, supported by this strong economic outlook. Global concerns were sparked by a surge in crude oil prices, August’s US jobless claims data, weak Chinese service PMI and trade figures, and rising gas prices due to strikes in Australia, he said.
However, in the broad market, mid- and small-cap stocks attracted strong buying interest, even though their valuations were relatively high. Moreover, heightened order inflows made sectors like infrastructure and realty particularly attractive to investors during the week. Currently, the market is eagerly awaiting data on inflation and industrial production to provide further guidance, he added.
