Nifty climbs to new record high of 15,705; how soon do we see 16,000?

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Indian equity indices exhibited a strong show on Thursday as firm global cues, fall in daily Covid-19 cases, and a stronger rupee kept market mood upbeat. Benchmarks opened the day higher and Nifty50 soon hit its new record high of 15,705.

Markets traded in a tight range close to its record high levels through the day and the Sensex, Nifty and the MidCap indices closed at fresh closing highs as well.

The Sensex ended 383 points higher at new closing high of 52,232 while the Nifty rose 114 points to its fresh closing high of 15,690. The MidCap index ended higher by 0.9% and SmallCap index was up 1.2% at close.

The gains came despite the PMI services index falling to 46.4 in May from 54 in April indicating contraction in the industry. The contraction has been witnessed for the first time in eight months.

Buying was seen in the infra, metal, FMCG, energy and banking names, while pharma stocks remained under pressure. Nifty Realty index gained the most today, was up 4%, where Oberoi Realty, Phoenix and Prestige Estates surged between 6% and 10%.

Titan Company share price surged as high as 6% to Rs 1,681.15 a new all-time high, was the top Nifty gainer followed by ONGC, Eicher Motors, L&T and Axis Bank while on the losing side IndusInd Bank, Wipro, Dr Reddy’s, Tata Steel and Bajaj Auto did not participate in the rally.

The Reserve Bank of India will come out with its bi monthly policy review tomorrow. Analysts expect MPC to keep the policy interest rates unchanged, maintain the accommodative stance and ensure adequate liquidity in the system to stimulate growth.

Here’s what experts say investors should do on Friday 

Ajit Mishra, VP-Research, Religare Broking 

Markets resumed the uptrend after a minor pause and gained over half a percent, tracking firm global cues.

All eyes will be on the RBI monetary policy on June 4, with the majority expecting status quo on key rates.

However, the commentary on growth and inflation will be closely watched. We may see volatile swings during the day, so traders should plan accordingly.

Nagaraj Shetti, Technical Research Analyst at HDFC Securities

The short term trend of Nifty continues to be positive and one may expect further upside in the coming session. Though, Nifty placed at all time highs, there is no indication of any reversal pattern unfolding at the swing highs. The next upside levels to be watched around 15800-15900 levels in the next few sessions. Immediate support is placed at 15575.

Rohit Singre, Senior Technical Analyst, LKP Securities

The index saw one more positive breakout as the Nifty closed the day nearly a percent higher. The support has shifted upwards towards the 15650-15600 zone and as long as it trades above it, we may see the momentum continue and take the index towards the next hurdle zone of 15,800.

Every dip is a buying opportunity around said levels. On an immediate basis, 15,450 will be the trend reversal level. A close below it can trigger profit-taking.

Manish Hathiramani, Technical Analyst, Deen Dayal Investments

The Nifty has closed closer to 15700 and should now be headed to 15900-16000 as the next potential target. There are multiple levels which are supporting the index during intra day falls.

15500, 15400 and 15300 are the other levels of support, the most crucial being 15300. As long as the markets can hold on to that level, the overall trend remains bullish and traders can accumulate long positions around these support zones.