Dalal Street bulls dominate as Sensex, Nifty hit fresh closing highs

By Koustav DasBenchmark stock market indices ended the trading session on a positive note, gaining for the fourth week in a row. Both indices logged new closing highs as fresh US data boosted sentiments on Dalal Street.

The S&P BSE Sensex gained 467 points to settle at 63,385, while the NSE Nifty 50 jumped to 18,827 after rising 138 points. Both indices are just inches away from hitting fresh record highs.

Broader indices also gained in line with the benchmark indices as volatility fell sharply.

A majority of the sectoral indices gained today, with Nifty Bank and Financial Services gaining over 1% each. Nifty IT and Nifty Realty were the only ones that ended in negative territory.

HDFC Life, SBI Life, Bajaj Finserv, Dr Reddy’s and Titan were the top gainers on the Nifty 50, while Wipro, Bajaj Auto, TCS, BPCL and ONGC emerged as the top laggards.

Most analysts expect the ongoing rally to continue with the possibility of some consolidation in the near term.

V.L.A. Ambala, research analyst and co-founder at Stock Market Today, said, “Banking index, both Private and PSU, outperformed today and closed in positive territory, whereas yesterday it had underperformed.”

“Today’s closing was very crucial for overall market sentiments and major indices, except Nifty IT, closed in green. Today, Nifty gave new second all-time high levels. After yesterday’s sell-off, it was a really amazing bounce back,” she added.

On the technical side, Ambala said, “Last hour movement had completely changed the price sentiment. For the next movement in the market, there are some important levels that we need to consider. Major support for Nifty is 18,720 and 18,670, wherein major resistance levels are 18,920, 18,960 and 19,015.”

“Overall, the market closed on a positive note and bulls’ presence was clearly visible on the price chart. Today’s closing points are very crucial. If prices sustain above these levels in the coming days, there are possibilities that Nifty and Sensex may continue this upside movement ahead.”