Indian equity benchmarks finally came out of their stretch of consolidation and clocked in record high levels on Tuesday.
The Nifty 50 surpassed the psychological 16,000-mark for the first time yesterday. The level translates into a return of 14% for the index so far in 2021. The index completed its 1000-point journey in about 6 months from 15,000 which it had clocked in on February 5.
The BSE S&P Sensex zoomed 937 points in the intra-day deals and hit a record high level of 53,888, led by Titan Company (up 4%), HDFC, IndusInd Bank, Sun Pharma, SBI, and Nestle India. It pared gains marginally and ended at 53,823 levels, up 873 points or 1.65%.
The Nifty50, meanwhile, hit new peak of 16,147. It ended with 246 points, or 1.5%, gains at 16,131 levels.
Nifty punched out the consolidation phase in style. The range bound action seen in the index since last 8 odd weeks has finally resolved with a breakout on the upside. Nifty has broken out the shackles and it is time for a nice trending action to emerge.
Time and again we have been stating that the narrow ranged move in Nifty should resolve into a continuation pattern and we did see this. Expect Nifty to see a rally towards 16300-16350 before the end of the expiry. Support is now at 15700. As long as 15700 holds Nifty should have its tail up.
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