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Stock Market Today: Continuing the prevailing upward trend, Markets made a robust start to the week and gained nearly a per cent, with the NSE Nifty breaching its record level of 20,000 for the first time and the BSE Sensex reclaiming its 60,000 level after four months. The Nifty on Monday jumped 176.4 points to close at 19,996.35, its all-time high level, while the Sensex surged 528.17 points to end the day at 67,127.
The Sensex earlier touched its all-time high level of 67,571 on July 20, 2023. The Nifty also hit its record high level of 19,991.85 on July 20 this year.
4 Key Reasons For Today’s Market Rally
Vinod Nair, head of research at Geojit Financial Services, shared four key reasons for the Monday’s stock market rally:
1) The domestic markets began the day on a positive note, bolstered by the historic consensus achieved at the G20 summit, which instilled confidence among investors
2) Higher-than-expected loan growth data and strong profitability along with lower NPA in PSU banks attracted investor interest
3) Expectations of easing inflation, driven by a decline in vegetable prices, fuelled optimistic sentiment, leading to a market rally
4) The return of China from deflation, growth in new bank loans, and reduced concerns about US rate hikes have paved the way for the domestic markets to reach new all-time highs
Pratik Gupta, CEO & co-head of Kotak Institutional Equities, said, “What is really impressive about the Nifty reaching this all-time high level is that it has been driven mainly by local flows in recent months, while FPI flow has been relatively subdued, partly due to limited global interest in Asia funds given the weak outlook for China which has a very high weightage in the region.”
Nifty At Record High, Sensex Surges: Technical Analysis
The Sensex opened at 66,807.73 against the previous close of 66,807.73 and rose to touch its intraday high of 67,172.13. The BSE benchmark index ended the day with 528.17 points, or 0.79 per cent, higher at 67,127.08.
The Nifty on Monday opened at 19,890 against the previous close of 19,819.95. It then jumped about a per cent to hit its all-time high of 20,008.15 during the session. It finally closed the day at its record closing high of 19,996.35, surging 176 points or 0.89 per cent.
Ajit Mishra, senior vice-president (technical research) of Religare Broking Ltd, said, “Markets made a robust start to the week and gained nearly a per cent, in continuation of the prevailing trend. On the benchmark front, Nifty finally tested the new milestone of ‘20,000’ and settled almost at the day’s high as well. The majority of the sectors contributed to the move wherein metal and auto were among the top gainers. The broader indices traded in tandem and rose over a per cent each.”
He said that there might be some consolidation around the current levels after reclaiming the record high but the tone is likely to remain positive. While all the sectors are contributing to the move, the performance of banking would play a crucial role in making a sustained up move from hereon.
“At the same time, participants should maintain caution in stock selection, especially in the midcap and smallcap space,” he said.
Rupak De, senior technical analyst at LKP Securities, said, “Bulls continue to lead the way as the benchmark index surged to a historic high, breaching the 20,000 mark for the very first time. This impressive rally followed a breakout from a descending channel that occurred last week.”
Looking ahead, market sentiment is expected to remain upbeat as long as the Nifty stays above the 19,900 level. On the upside, we can identify an immediate resistance zone between 20,100 and 20,200, he said.
“If there is a convincing breakthrough above 20,200, it could pave the way for the Nifty to advance towards the 20,500 mark,” Rupak De said.
The BSE benchmark had jumped 333.35 points or 0.50 per cent to finish at 66,598.91 on Friday. The broader Nifty advanced 92.90 points or 0.47 per cent to settle at 19,819.95.
Global Markets Today
In Asian markets, Seoul and Shanghai ended with gains while Tokyo and Hong Kong settled lower. European markets were trading in the green. The US markets ended in positive territory on Friday.
Crude Oil Today
Global oil benchmark Brent crude declined 0.23 per cent to USD 90.35 a barrel.
Foreign Investment Inflow
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 224.22 crore on Friday, according to exchange data.
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