The Nifty had a good start as strong global cues saw the index trade higher through the session to end with a gain of 103 points at 17,936, its highest closing since August 18.
The index formed a small-bodied bullish candle on the daily charts. Bulls seem to be in a strong position and may be ready to push the Nifty beyond 18,000 soon with crucial support at 17,700-17,500, experts said.
All sectors participated in the run, with IT and metal emerging as the biggest gainers. The broader market outperformed the benchmark. The Nifty midcap 100 and smallcap 100 indices gained 1 percent and 1.3 percent, respectively.
“Although key indices are lacking a bit of momentum, the undertone seems strongly bullish and as a result, the Nifty is now within a touching distance of the psychological mark of 18,000. It’s merely a formality now, we would see it on the screen very soon,” Sameet Chavan, Chief Analyst-Technical and Derivatives at Angel One said.
A move towards 18,200–18,350 is possible in the near future. “This view remains valid as long as the Nifty defends 17,700–17,600 on a closing basis,” he said
One should continue to remain positive and even if key indices consolidate a bit, stock-specific action is likely to continue, the market expert said.
The volatility index India VIX rose 1.24 percent to 17.94 levels.
Banking index
The Bank Nifty started off higher at 40,540 and hit a high of 40,685 before closing the day at 40,574, up 158 points from the previous session.
It formed the Doji pattern on the daily charts, indicating indecisiveness among bulls and bears about the future trend.
“The undertone remains bullish and once should keep a buy-on-dip approach with strong support at the 40,000-39,800 zone. The immediate hurdle on the upside is placed at 40,700 and once taken out will witness a swift move towards 41,500-41,800 levels,” Kunal Shah, Senior Technical Analyst at LKP Securities said.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
