Markets ended at record closing highs; what should investors do on Friday?

Equity benchmarks the Sensex and the Nifty logged healthy gains to settle at record closing highs on Thursday as dovish comments by Federal Reserve on interest rates boosted investor sentiment. BSE Sensex closed above 53,100 for the first time ever. The 30-share index ended 255 points or 0.48% higher at 53,159, while the Nifty 50 index broke out the 15,900 levels and managed to end 0.4% or 70.25 points higher at 15,924.

The BSE Midcap and Smallcap closed 0.31% and 0.43% higher, respectively.

Nifty Realty emerged as the top sectoral gainer, closing 4.20% higher, followed by Nifty IT that rose 1.29%. Nifty auto, down 0.40%, media, down 0.35%, PSU bank, down 0.33%, and pharma, which ended  0.27% lower, closed in the red.

Foreign institutional investors (FIIs) net sold shares worth Rs 264.77 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 439.41 crore in the Indian equity market on July 15.

Here’s how experts see market trading on Friday

Gaurav Ratnaparkhi, Head, Technical Research, Sharekhan by BNP Paribas

The Nifty posted a positive daily close for the fourth consecutive session. It recently broke out from a triangular pattern on the hourly chart and the follow-through continues on the upside.

All these observations suggest that the Nifty is set to head north. It is expected to surpass the 16,000-mark and head towards 16,400.

Ajit Mishra, VP-Research, Religare Broking Ltd

Favourable global cues combined with supportive domestic factors are helping the index to inch higher. Though the Nifty surpassed the hurdle of 15,900, it lacked decisiveness.

Nevertheless, we feel the recent resilience in banking would help the index to gradually inch higher hereon. Participants should continue with bullish bias and focus on identifying the right opportunities on dips.

Manish Shah, Founder, www.Niftytriggers.com

Nifty finally seems to be popping out of the box. Nifty saw a long green candle after prolonged phase of range bound action between 15900-15950. This was the active range for last several weeks. Nifty has had a normal range candle that opened at the low and closed at the highest level for the day. We have not seen a larger than normal range expansion. But Nifty breaks and holds above the resistance at 15930-15950 or closes above this zone for 2-3 consecutive days the breakout is confirmed.

If we try to enclose within the trendlines the range from June till date we see Nifty breaking out of and ascending triangle pattern. This could be a trend continuation pattern

Nifty now needs to maintain its momentum and remain at elevated levels for a few more days. On the upside the potential is 16200-16300. Nifty should not snap back into the range and in case Nifty drops below 15840 we will have to rethink if there is a failure of the breakout. As things stand out Nifty should continue its up move over next few weeks.