Market extends its record-breaking spree. Here’s what investors should do on Tuesday
Experts believe as long as the index keeps trading above 17330, the uptrend texture is likely to continue
Indian equity markets ended at record closing highs led by IT, realty and auto stocks. Among other sectors, banks, FMCG and pharma indices ended in the red. Broader markets also supported market sentiment, with the Nifty Smallcap100 index jumping 1.09%, and the Nifty Midcap100 index rising 0.4%.
The S&P BSE Sensex rose 166.96 points 0.3% to end at a record closing high of 58,296, while the Nifty closed 54 points, or 0.3%, higher at 17,377.8 after having clocked in a record level of 17,429.5 in intraday trade.
IT majors like Wipro, HCL Technologies, Infosys along with heavyweights Reliance Industries and Hindalco Industries were the top Nifty gainers today, while IOC, IndusInd Bank, ONGC, Britannia Industries and Kotak Mahindra Bank were the top Nifty losers.
In fact, RIL surged to record highs with the market cap rising up to Rs 16.75 lakh crore and has gained a market cap of over Rs 1 lakh crore in the last two trading sessions alone.
Here’s how analysts see markets trading on Tuesday
Ajit Mishra, VP – Research, Religare Broking:
Markets started the week on a positive note in continuation to the prevailing uptrend and ended marginally higher. The benchmark opened gap-up following supportive global cues however mixed trends across heavyweights capped the move.
Markets are steadily inching higher, tracking favourable global markets and supportive domestic sentiment. We may see some consolidation ahead and it would be healthy however there’ll be no shortage of trading opportunities on the stock-specific front. Considering the recent momentum, it’s prudent to look for strong counters to accumulate on dips.
Shrikant Chouhan, EVP, Equity Technical Research, Kotak Securities:
The market continued its positive momentum and mirrored the up-move in other global markets. The Nifty is still maintaining a higher bottom formation which is broadly positive. However, the markets being in an overbought situation could trigger a quick intraday correction if it trades below 17330 support level.
As long as the index is trading above 17330, the uptrend texture is likely to continue up to 17450-17500 levels. On the flip side, if Nifty trades below 17330, it could trigger an intraday correction up to 17250-17210 levels.
Rohit Singre, Senior Technical Analyst at LKP Securities:
Index again shifted its support to 17,300-17,200 zone and any dip around mentioned level will be fresh buying opportunity.
If it managed to hold above-said levels we may see the extension in the current up move towards 17,500 zone, where traders can lock their gains as 17,500 will act as strong hurdle and also if sustain above 17,500 zone, then fresh doors will open for 18,000 mark.
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