In a remarkable display of resilience, the market closed September’s last week on a high note, delivering record returns. This surge was underpinned by robust macroeconomic indicators, heightened participation from domestic investors, and growing optimism about the possibility of a pause in the US Federal Reserve’s rate hikes.
Record Returns Amid Macroeconomic Strength
During the week ending September 8, Nifty closed at 19,820, registering a notable gain of 1.97% or 384.7 points, while the BSE Sensex concluded at 66,598.91, climbing by 1.85% or 1,211.75 points. Small and medium-cap stocks continued to shine, with the BSE Mid-Cap Index surging by 4%, the BSE Small-Cap Index rising by 2.2%, and the BSE Large-Cap Index advancing by 2%.
Despite challenges such as an erratic monsoon, a strengthening dollar, rising bond yields, and escalating crude oil prices, the market’s upward trajectory has pleasantly surprised many.
Bullish Momentum and Support Levels for Nifty and Bank Nifty
Vinod Nair from Geojit Financial Services attributes the market’s positive performance to robust GDP and PMI data, which sustained the upward momentum despite weak global signals. The market’s bullish trend is further bolstered by India’s promising economic growth prospects, with close attention now focused on inflation and industrial production figures.
Sectoral indices painted a picture of green across the board in the week ending September 8. The BSE Realty Index and BSE Capital Goods Index recorded impressive gains of 5%, while the BSE Energy Index and BSE Power Index climbed by 4.7%.
The BSE Small-Cap Index stood out with a 2.2% increase, with several stocks, including MMTC, GTL Infrastructure, National Peroxide, Cochin Shipyard, Bombay Burma Trading Corporation, Magadh Sugar & Energy, GMR Power, SpiceJet, Vikas WSP, Ashapura Minechem, Transformers & Rectifiers India, and Sadhna Nitrochem, posting gains ranging from 21% to 50%.
Looking ahead, market experts offer their insights
Deepak Jasani from HDFC Securities predicts further upside for Nifty, with a potential move towards 19,991 in the coming days. Support may be found at 19,620.
Deven Mehta of Choice Broking identifies support for Nifty in the 19,600-19,650 zone, with the highest call open interest at 19,900 and 20,000. The highest put open interest is at 19,700. For Bank Nifty, support is at 44,500-44,600, with resistance at 45,500-45,700.
Amol Athawale from Kotak Securities highlights Nifty’s strong technical position, maintaining higher bottom formations and trading comfortably above the 50 and 20-day SMA. He sees support at 19,700-19,650, with potential upside to 20,000. Bank Nifty is also on an upward trajectory, with support at 44,700.
Nifty and BSE Sensex Impress with 1.97% and 1.85% Growth
Jatin Gedia of Sharekhan suggests a consolidation phase for Nifty, with a possible range of 19,850-19,670, followed by an upward target of 19,900. For Bank Nifty, a level of 45,500 is on the horizon.
Investors are increasingly turning to India due to limited opportunities in global markets. Nifty’s technical indicators and bullish candlesticks on the weekly chart signify potential for further gains. Support is seen at 19,700-19,650, while a fall below 19,650 could indicate a dip to 19,550-19,500.
Bank Nifty’s rise is marked by a crossover in the Momentum indicator and higher bottom formations. Positional traders can anticipate support at 44,700, potentially leading to a rally up to 45,600-45,900. Conversely, breaking below 44,700 may bring Bank Nifty to the 20-day SMA or 44,300-44,000 levels.