The benchmark equity index Nifty 50 ended Thursday’s trading session in positive territory to hit an all-time high for the fourth straight session. The 50-stock index rose to a record high of 22,252.50 on February 22. The NSE Nifty 50 closed 162.40 points or 0.74% higher to settle at 22,217.45 points. While S&P BSE Sensex advanced over 500 points or 0.74% to settle at 73,158.24 points. Flipping the trend, Nifty Bank declined 100 points or 0.21% to settle at 46,919.80 points.
On the sectoral front, IT and auto stocks gained the most amongst their peers. The broader indices ended in the green, with gains led by largecap and midcap stocks. Following the trend, the Nifty Midcap 100 also rose nearly 500 points or 1.02% to close the day’s trading at 49,128.35.
The gainers include IndusInd Bank, HDFC Bank, Kotak Mahindra Bank, BPCL, and Hero MotoCorp. The Indian Volatility Index (India VIX) closed 4.65% lower.
“The move shows that bulls are in control thus participants should continue with a “buy on dips” approach until Nifty decisively breaks the 21,800 level. At the same time, we are seeing a mixed trend within the sectors so participants should maintain extra caution in stock selection and prefer counters with higher relative strength,” said Ajit Mishra, Senior Vice President of Technical Research at Religare Broking while commenting on the day’s close.
Commenting on the technical aspects of the Bank Nifty Tejas Shah, Technical Research Analyst at JM Financial & BlinkX said that as long as the Bank Nifty is holding above the 46,000 mark, the rally in the index is likely to continue and it can test the next resistance level of 47,300 on an immediate basis and eventually it is likely to test the psychological resistance of 48,000 on the higher side. However, on the downside, the support zone lies at 46,600-700 / 46,000-200 while the resistance is seen at 47,300-400 / 48,000. “Overall, all dips should be used as an opportunity to Buy,” he said.