Nifty Hits Fresh All Time High, But Momentum Fades at Higher Levels

Mr. Vinay Rajani, Senior Technical & Derivative Research Analyst, HDFC Securities

Nifty consolidated for the third straight session, ending with a marginal loss of 27 points at 26,175. Open and high of the session remained same, which showed dominance of the bears throughout the session. Nifty opened 100 points higher, registered a fresh all time high at 26325 but failed to sustain gains at higher levels and witnessed 200 points correction during the session. NSE cash market turnover rose 3% versus the previous session.

Within the Nifty basket, UltraTech Cement , Tata Motors (passenger vehicles) and Maruti Suzuki were notable outperformers, while Max Healthcare, InterGlobe Aviation and Bajaj Finance came under pronounced selling pressure. Sectorally, Auto, Metal and IT indices ended in the green, whereas Realty, Healthcare and Consumer Durables closed lower. The broader market was mixed, with the Nifty Midcap 100 finishing flat and the Nifty Smallcap 100 edging up about 0.25%, even as BSE market breadth stayed weak with an advance decline ratio near 0.76.

On the macro front, the Indian Rupee extended its losing streak for the fourth consecutive session, touching a fresh record low versus the US Dollar amid strong dollar demand and tight supply. The persistent weakness is being driven by a wider trade deficit, delays in the India-US trade agreement and relatively limited central bank intervention, with the rupee closing about 10 paise lower at 89.56 against the greenback.

Despite this intraday correction, Nifty managed to close above the nearest support derived from its 5 DEMA placed near 26150. Positional trend of the Nifty remains bullish with strong support at 26000-26050 zone. On the higher side, 26300 could offer resistance on closing basis.

Source : Equity Bulls

Keywords

Nifty Sensex BSE NSE AllTimeHigh HDFCSecurities