Nifty Ends Above 22,000, Sensex Over 73,000 For First Time: Market Wrap
The NSE Nifty 50 ended 0.99%, or 202.90 points, higher at 22,097.45, while the S&P BSE Sensex gained 1.05%, or 759.48, to close at 73,327.94.
India's benchmark stock indices ended at a fresh record closing high for the second day in a row on Monday, led by gains in index-overweight HDFC Bank Ltd., Reliance Industries Ltd., and Infosys Ltd.
The NSE Nifty 50 ended 0.99%, or 202.90 points, higher at 22,097.45, while the S&P BSE Sensex gained 1.05%, or 759.48, to close at 73,327.94. The Nifty hit a high of 22,110.45, and the Sensex touched 73,327.94.
"We are of the view that the larger texture of the market is still on the positive side, but due to temporary overbought conditions, we could see range-bound activity in the near future," said Shrikant Chouhan, head of equity research at Kotak Securities.
"For the traders, 22,000–21,950/73,000–72,800 would be the key support levels for Nifty and Sensex, respectively, while 22,150–22,225/73,500–73,800 could act as key resistance zones," he said. "However, below 21,950/72,800, an uptrend would be vulnerable; buying on intraday corrections and selling on rallies would be the ideal strategy for day traders."
"The IT sector has led the Nifty rally this month and has spiked significantly in the last two trading sessions because of decent results backed by cheaper valuations. However, the recent upswing warrants a certain degree of caution as, many times, such sharp rallies do not sustain themselves. Thus, we believe that the near-term view will be cautious and suggest profit booking in areas of exuberance, especially in the small-cap space," said Pranav Haridasan, managing director and chief executive officer at Axis Securities.
HDFC Bank Ltd., Reliance Industries Ltd., Infosys Ltd., Bharti Airtel Ltd., and HCL Technologies Ltd. contributed positively to the Nifty 50.
Bajaj Finance Ltd., Larsen & Toubro Ltd., HDFC Life Insurance Company Ltd., Hindalco Industries Ltd., and Bajaj Finserv Ltd. weighed on the index.
On the NSE, 10 sectors out of 12 advanced, with the Nifty IT rising 1.86% to become the top performer among sectoral indices. Around two sectors declined; Nifty Media declined the most.
The broader markets underperformed, with the BSE MidCap closing with 0.67% gains and the BSE SmallCap ending 0.11% higher on Monday.
ighteen out of the 20 sectors compiled by BSE Ltd. advanced, while two declined. BSE Information Technology and BSE Oil & Gas rose the most.
The market breadth was skewed in favour of the buyers. As many as 2,102 stocks advanced, 1,843 declined, and 116 remained unchanged on the BSE.
