Nifty eyes 16,850 target as bulls continue surging higher; indices post fresh record closing highs

BSE Sensex and Nifty 50 turned positive, ending at record closing highs at the dying hours of the trade on Tuesday, led by buying in IT and FMCG stocks. BSE Sensex surged 210 points or 0.4 per cent to 55,792.27, while the Nifty 50 index ended at 16,614, rising 0.31 per cent or 51.55 points. Index heavyweights such as Infosys, Tata Consultancy Services (TCS), Hindustan Unilever Ltd (HUL), Tech Mahindra and HCL Technologies, contributed the most to the indices’ gain. In the broader market, BSE Midcap stocks outperformed the BSE Sensex and Nifty 50, rising 0.7 per cent or 161.60 points to 23,061.77. while BSE Smallcap index gained 0.30 per cent or 79 points to end at 26,284.83. India Vix, the volatility index, cooled off 0.33 per cent to settle at 13.41 levels.

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

The index successfully achieved its target of 16600. If we can keep above this, the next level should be 16850. Profit booking sessions cannot be ruled out. Since the overall trend is positive, traders can utilize intra day corrections to accumulate long positions for higher targets.

Rohit Singre, Senior Technical Analyst at LKP Securities

Index continued its northwards move for one more session as it managed to close a day on fresh high at 16614 with gains of nearly half per cent and formed a bullish candle on daily chart. Index showed some selling pressure but again it managed to hold its bullish stream and witnessed a good pullback after retesting its strong support zone of 16500 zone which hints going forwards also 16500 will act as good base & holding above said levels we may see the index to touch fresh highs 16700 zone in near term.

Gaurav Udani, CEO & Founder, ThincRedBlu Securities

Nifty gave a swift up move from its days low of 16495 and closed at 16615 up by 51 points. Nifty has strong support at 16450 and 16500 levels. Nifty is in a strong uptrend and will test 16700 and 16750 in the next trading sessions.

S Ranganathan, Head of Research at LKP Securities

The rally in IT stocks kept bulls firmly in control despite a truncated week with several high-quality Midcap names rallying in the expansionary phase over the last several months. Metal Names though met with profit-taking in today’s trade. While worries over the deterioration in asset quality in private sector banks persist, the recent lull in the progress of the monsoon needs to be watched closely.