Sensex, Nifty scale fresh highs for 5th straight day; check key support, resistance levels for Nifty

Headline indices, BSE Sensex and Nifty 50 logged record closing peaks for the fifth consecutive session on Thursday. BSE Sensex jumped 224 points or 0.48 per cent to end at 46,890 while the broader Nifty 50 ended at 13,740, up 58 points or 0.42 per cent. During intra-day deals, Sensex nearly approached the crucial 47,000 and hit a lifetime high of 46,992. On the other hand, Nifty 50 made an all-time high of 13,773.25. The broader market underperformed the equity benchmarks. The S&P BSE MidCap index closed at 17,864, down 0.13 per cent. It scaled to a fresh 52-week high of 18,107 in the intraday trade. While the S&P BSE SmallCap index closed at 17,811, down 0.23 per cent.

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

“The Nifty has successfully closed above the crucial level of 13700. We should now be headed to 14000-14100 levels. 13400-13500 is now good support for the markets. Every dip can now be utilised to accumulate positions for higher targets.”

Binod Modi, Head Strategy at Reliance Securities

Domestic equities remained upbeat and recorded fresh highs. Better prospects of earnings recovery, dismal interest rate scenario and strong FPIs participation led markets to see record highs. As underlying strengths of market remain intact, we expect market to remain buoyant in the near to medium term. Further, excess liquidity situation globally is expected to sustain for the medium term, which will continue to lend support to equities. However, a visible slowdown in diesel sales, volumes in digital transactions and credit card spends post festivals and rise in input prices may be threats for earnings rebound. This along with rich valuations might not lead to a broad-based rally in subsequent period. Hence, investors must stick to quality names which enjoy strong earnings potential, better corporate governance and margins of safety.

Rohit Singre, Senior Technical Analyst at LKP Securities

“Index reacted on previous breakout and opened a day with gap up but saw some profit booking from day’s high. Index closed a day at 13741 with gains of 58 points and formed a one doji candle pattern on daily chart representing indecision. Going forward 13680 will act as immediate support any breakdown below 13680 can lead in more profit booking and we may see index to take a dip towards 13600 zone which is another support on the downside, today’s high will act as immediate resistance on higher side which is at 13775”

Deepak Jasani, Head of Retail Research, HDFC Securities

Indian equity benchmark indices registered yet another record high in today’s session, rising for the fifth consecutive session. The high low range for the Nifty was just 100 points. Volumes on the NSE were below recent averages. World stocks climbed new peaks and oil marched higher on Thursday as investors bought risky assets on hopes of a U.S. fiscal stimulus and the Federal Reserve’s pledge to keep pumping cash into markets. A Brexit deal appears increasingly in focus even as all eyes are now on the Bank of England’s policy rate decision on Thursday. Nifty continues to make new highs. Sectoral rotation is back in limelight. Broader markets could continue to be rangebound while Nifty could still rise another few hundred points.