nifty: Market Watch: Nifty’s support at 17,950; breach below 17,900 could be a concern | The Economic Times Podcast

Bulls continued to dominate the domestic equity markets as the benchmark indices extended their gains for the straight fourth session amid the firm global cues. Investors ignored India’s high inflation numbers and lower factory output data.

Index heavyweights including financials, telecom and IT counters led the gains.

Ajit Mishra, VP – Research, Religare Broking said that Markets started the week on a firm note and gained over half a percent, in continuation of the prevailing trend.

“Firm global cues triggered an upbeat start in Nifty and it almost retested the previous swing high closer to the 18,000 mark in early trades and remained range bound thereafter,” he added.

BSE’s 30-pack index, Sensex jumped 456 points to settle above 60,570 mark, whereas NSE barometer Nifty50 index added about 134 points to end the day at 18,070. The index settled above the 18,000 mark for the first time since April 4.

On Nifty50, Bajaj Finserv led the gains with a 4.74 per cent rise to Rs 1,795.10. Tata Consumers rose 2.85 per cent. IndusInd Bank, Britannia and Bharti Airtel were the other gainers, which rose about 2 per cent each.

Among the losers, Shree Cement, Cipla, Eicher Motors and Divis Labs dropped in the range of half a per cent to one per cent each.

The short term trend of Nifty continues to be positive amidst a range movement. The display of lack of strength post up move of crucial resistance of down trend line at 17900 levels could be a cause of concern, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

“The next two overhead resistances are to be watched at 18,115 and 18,350 levels. Immediate support is placed at 17,950 levels,” he added.

Nifty100 midcap index and Nifty100 smallcap index added marginally higher, whereas Nifty500 index rose over half a per cent during the session.

On a sectoral basis, Nifty Metal index gained over a per cent, followed by Nifty Bank, Financial services, FMCG indices, which added about a per cent each. On the other hand, Nifty realty and IT index settled in red with marginal cuts.

On BSE, losers outpaced gainers as 1,865 stocks advanced, 1,632 declined and 103 remained unchanged.

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