Synopsis: “The market seems to be in good shape despite a significant run-up,” said Dharmesh Shah, head of technicals at ICICI Direct. “A break cannot be ruled out at the psychological levels of 21,000, which should not be looked at as a detrimental construction, but as a buying chance for traders.”
Sensex reaches a new high, but caution prevents it from reaching nearly 70k.
Sensex reaches a new high prevents it from reaching nearly 70k Mumbai: For the third day in a row, information technology stocks drove India’s stock indices to all-time highs on Wednesday. However, worries that the market might be overbought following the recent surge in value restricted gains. Both the Nifty and the Sensex finished 63 points below 21,000 and 347 points short of the 70,000 threshold.
Nifty of the NSE ended the day on Wednesday at 20,937.70, up 82.60 points, or 0.4%. The BSE’s Sensex closed up 357.59 points, or 0.52%, at 69,653.73.
ICICI Direct’s head of technicals, Dharmesh Shah, stated, “The market looks positive though it has run up a lot.” “A respite cannot be ruled out above the key value of 21,000, which cannot be examined as a bad builder, but a buying opportunity for traders.”
If the Nifty can hold above 20,300, Shah believes it will rise to high of 21,400.
In the last five trading days, both indices have increased by 4% due to sustained foreign purchasing and confidence surrounding the Bharatiya Janata Party’s victories in three of the four main state elections. Since October 26, the Sensex and Nifty have experienced a nearly lopsided surge, rising by nearly 11% each.
Wednesday saw the turn of events for foreign portfolio investors, who had invested ₹20,400 crore in stocks in December, selling shares for a meager ₹79.78 crore. The total amount purchased by domestic institutions was ₹1,372.18 crore.
