On Wednesday, the Indian stock market recovered from intraday lows to close at record highs. For the first time ever, the Sensex finished over the crucial 85,000 barrier, while the Nifty also ended above the 26,000 mark, a first for the 50-stock index.
Afterwards, the Nifty finished 64 points higher at 26,004 and the 30-stock index finished 256 points higher at 85,169. In today’s session, the market capitalisation of companies listed on the BSE was Rs 475.25 lakh billion. Fifteen out of the thirty equities on the Sensex closed higher. With the BSE Bankex and BSE metal index surging 205 points and 133 points, respectively, banking and metal stocks led the surge.
The top Sensex gainers, increasing to 3.91%, were PowerGrid, Axis Bank, NTPC, Bajaj Finserv, Bajaj Finance, and Tata Steel respectively. With over three months left in 2024, the Nifty has gained 19.66% and the Sensex has up 17.90% so far this year. The Sensex achieved a new high of 85,247 during today’s session, while the Nifty also touched a record high of 26,032. This is a look at what analysts stated about the market future with indexes reaching all-time highs.
“A brief China-led rally seemed to be dying out, leaving shares in Europe and Asia mixed on Wednesday after a strong start that had extended overnight gains on Wall Street,” stated Deepak Jasani, Head of Retail Research at HDFC Securities. Amid worries about the region’s prospects for growth, European stock markets began to decline. China’s central bank reduced its medium-term lending facility, and as a result, Chinese and Hong Kong markets saw significant gains that continued the previous session’s advance.
On September 25, the Nifty formed an engulfing bull pattern after breaking out of the range of the previous two days, despite its unfavourable position at the highs. Nifty is currently trending towards 26,250 in the near future as dip buying continues. Band 25611-26791 might provide assistance.
Senior Technical Research Analyst at HDFC Securities Nagaraj Shetti stated: “On the daily chart, a decent bull candle with a slight upper shadow was created. From a technical perspective, this pattern suggests an attempt at an upward breakout of the two sessions’ narrow range movement near the 26K mark. The Nifty is still on a favourable near-term trend. The market is moving in a range with significant upward momentum in between. The following upward levels to keep an eye on are between 26200 and 26300 (1.618% Fibonacci Extension). 25,800 is the number for immediate help.
“Markets experienced a volatile session but managed to extend their upward trend, with a sharp rally in the last half hour pushing Nifty to close near the day’s high,” stated Ajit Mishra, SVP, Research, Religare Broking. Sectoral performance was uneven and the tone was muted for the most of the day. IT and FMCG underperformed, while the energy and real estate industries saw gains.
The market’s breadth was pressed by profit-taking in midcap and smallcap equities. Despite further consolidation, we remain positive and advise concentrating on choosing stocks that are in line with sectoral trends. In addition to rate-sensitive industries, metal and power equities are showing great momentum, and the recent dip in IT is a buying opportunity. Trader positioning ought to be planned appropriately.”
“After a range-bound trade, the benchmark indices inched higher towards close, led by power and banking stocks, while mid- and small-cap indices experienced corrections driven by valuation concerns,” stated Vinod Nair, Head of Research at Geojit Financial Services. Due to a decrease in FII inflow and a flight of capital to other developing markets because of their low valuation, the domestic market may see short-term difficulties.
In the meantime, growing Middle East tensions and the possibility of falling interest rates contributed to the attraction of gold as a safe-haven asset.” Senior Technical Analyst at LKP Securities Rupak De stated, “The Nifty has held above its very short-term moving average technically. Furthermore, the momentum indicator shows no signs of reversal. As a result, a range-bound to positive move may occur in the near future. Higher end resistance is located between 26200 and 26250.”
