Nifty finishes just few points shy of 20000 mark

View on Market Performance - Mr. Devarsh Vakil - Deputy Head Retail Research, HDFC Securities

The flagship Nifty was on the verge of breaching the psychologically important 20,000 mark and closed few points shy of the level. Nifty rose for the 6th consecutive session on back of strong global cues and registered new all-time high at 19991. Nifty added 0.74% in the upward rally by closing at 19979. The major U.S. indexes continue rallying behind an earnings season that has brought stronger-than-expected results so far.

Nifty Mid and small cap underperformed the Nifty where Nifty Midcap 100 and Nifty Smallcap 100 gained by 0.24 and 0.37% respectively. Advancing shares outnumbered the declining shares as advance decline ratio stood at 1.10 on BSE.

ICICI Bank Ltd. contributed the most to the index gain, increasing 2.3%. ITC Ltd. had the largest increase, rising 2.8%.

Market sentiment remains upbeat on robust foreign flows and healthy macroeconomic outlook. Expectations of the end of the monetary tightening cycle in the US after the July policy meeting is also contributing towards higher foreign flows into Indian bourse.

NSE Cash market volumes were higher as compared to recent averages. Amongst the sectoral Indices, Nifty Pharma, FMCG and Healthcare gained the most while Nifty IT and Consumer durable Index ended mildly in the red.

Nifty has been finding support on its 5 days EMA, which is currently placed at 19778. Resistance for the Nifty is seen at 20055, which happens to be a 78.6% Fibonacci extension levels considering the previous major swings.

Source : Equity Bulls

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MarketPerformance Nifty Sensex HDFCSecurities