India’s share markets again hit fresh record highs today, with the NSE Nifty 50 breaching 13,000 level for the first time ever, on the back of favorable global cues and COVID-19 vaccine hopes. BSE Sensex scaled to a fresh high of 44,488. According to analysts, if Nifty 50 remains above the psychological level of 13,000, it may further gain 150-200 points. Also, investors must watch Nifty 50’s closing level today. “One should wait for close above the 13k mark to bet more on the current rally as the NIFTY is presently in overbought zone and is moving higher with decelerating momentum as indicated by the narrowing slope of the Histogram,” Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst, Gemstone Equity Research & Advisory Services, told The Outlooker Online.
Nifty: From 12,000 to 13,000 in 18 months
Nifty achieved the crucial level of 12,000 in May last year 2019. It took the Nifty 50 index 18 months to rise from 12,000 to 13,000 levels. Vaishnav also added that the markets are in uncharted territory and if it sustains above 13,000 mark then putting exact resistance levels will be of no use. “But we can expect an incremental push of 150-200 points,” he added. Investor sentiment was boosted by the news of another COVID-19 vaccine ready as Oxford’s AstraZeneca said that its coronavirus vaccine could be as much as 90 per cent effective. Besides, global markets were also trading firm today, with Japan’s Nikkei up 2.75 per.
Vishal Wagh, Head of Research, Bonanza Portfolio Ltd, told The Outlooker Online that markets are in uncharted territory hence the higher side is logically unlimited. “From the trading perspective, one should remain invested with trailing stop loss below 12800 for expected upside till 13090-13220 levels,” Wagh added. He advised investors to make new buying on sell-off. At the current levels, buying will provide a lower risk to reward ratio.
Since opening today, Nifty 50 has been on an upward trajectory and is now trading near 13,050 levels. Top stocks that are fueling the up move today are Adani Ports, Maruti Suzuki, Eicher Motors, HDFC Bank, Axis Bank and Kotak Mahindra Bank. Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments, said that the markets would attempt 13100-13200 in this rally which would be a significant resistance zone. “We have good support at 12700 so any dip can be utilized to accumulate positions for a target of 13100-13200,” he added.