Chennai, June 16 (IANS) With falling inflation, and healthy economic numbers, the two Indian stock markets opened and closed at a higher note on Friday and are near their 52 week high levels.
The Nifty of the NSE opened at 18,723.30 and touched a high of 18,864.70 to close at 18,826 points. The 52-week high point was 18,887.60.
Similarly, the Sensex of BSE opened at 62,960.73, touched a high of 62,520.36 and closed at 62,917.63 points. The highest level was 63,583.07 points.
“The Nifty index has successfully broken above the important resistance level of 18,800, indicating a bullish sign,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
Shah said the writers of call options at 18,800 strike have been observed covering their positions, suggesting a positive sentiment as the Nifty sustains its position above 18,800.
The moving averages are below the current index value, which further supports the bullish outlook. Furthermore, the momentum indicator has given a falling trend line breakout, indicating a potential increase in upward momentum, Shah said.
“As long as the Nifty remains above the support level of 17,700, the overall trend is expected to remain positive. However, a resistance level is anticipated at 19,000, which may present a challenge for further upward movement,” he said.
According to Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd, Indian equities are set to make an all-time high on the back of a strong rally in global markets supported by healthy domestic cues.
Nifty continued its northbound journey to end at an all-time high on closing basis, with gains of 138 points (0.7 per cent) at 18,826 levels. The broader market too ended in green.
“Majority of the sectors ended in positive territory with Banking and Financial being top gainers up 1 per cent each,” Khemka said.
“Falling inflation and healthy economic data along with consistent FIIs buying cheered the domestic sentiments. Nifty came within striking distance of an all-time high. We expect the overall structure to remain positive with major events now behind,” he added.
According to him, all eyes would be on Prime Minister Narendra Modi’s visit to the US next week, as it would bring in cross-border agreements with a key focus on defence. Sectors like pharma, healthcare, and insurance companies would remain in focus after recovery was seen in monthly industry data.
–IANS
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