India’s stock benchmarks opened higher on the back of broad-based gains, tacking a global rally on expectations that a lower consumer inflation number in the U.S. may slow down the pace of Fed rate hikes.
The Sensex gained about 1.36% to open at 61,440.04 before quickly reaching to its 52-week high on Friday morning. Nifty 50 also rose by a similar magnitude to 18,278.80 and is just short of its 52-week high.
Here’s what market participants have to say about the rally:
‘More Upside If…’
Rahul Sharma, director & head of research, JM Financial
Bear market rally or a new bull run in the U.S. markets is something that has got many thinking, but one thing seems obvious that we are in a bull market and a new an all time high is within sniffing distance. Technically, we should see more upside if we close above 18,300 today and 18,605 can be challenged in the next week itself.
‘Don’t Expect Big Move On Either Side’
Hemen Kapadia, VP at KRChoksey Securites
Nifty all-time high is at 18,604 level which we achieved in October 2021. Usually, we have not been able to sustain above 18,300 levels. It is crucial for Nifty to sustain above 18,300 for the rally to sustain and Nifty to inch higher. Market setup looks good, however we are running into historically strong resistance levels. If the markets are able to remove historic resistance levels, the uptrend will continue. India VIX has inched below 15, which is a good sign. Hence, one should not expect a big move on either sides. Currently, there are no negatives in the market. US VIX has also cooled.
US dollar index made an intermediate peak after an eight-month of trend. The world setup, India and U.S. VIX, dollar index suggest good times for the equity markets. After hitting a fresh high today, Bank Nifty needs to close above 41,830. IT has bottomed out from a medium term.
If Nifty is able to take out 18,300 and 18,604, then 19,200 is the next level to watch. Expect Bank Nifty to hit 45,000.
Reliance Industries Ltd., Banks, IT and Metals expected to support markets to its journey to 19,300 levels.