Sensex, Nifty scale fresh record closing highs; here’s what analysts make of today’s trade

BSE Sensex and Nifty 50 index settled in the green for the fifth consecutive session, ending at record closing highs on Friday. BSE Sensex ended 117 points or 0.23 per cent up 50,732, while the Nifty 50 index ended 29 points or 0.19 per cent at 14,924. During the intraday deals, BSE Sensex made an all-time high 51,073.27, while the Nifty 50 index rose to a lifetime high of 15,014.65. The top contributors to the Sensex’ gains were State Bank of India (SBI), Kotak Mahindra Bank, HDFC Bank, ITC and Housing Development Finance Corporation (HDFC), among others. The broader markets underperformed the equity benchmarks. S&P BSE Midcap index fell 0.93 per cent or 182 points to 19,414, while the S&P BSE Smallcap index slipped 0.28 per cent or 53 points to end at 19,096.

Vikas Jain, Senior Research Analyst at Reliance Securities

The budget has provided a renewed optimism but the sharp run up of 9.3% in NIFTY50 over the past four days indicates some consolidation and sideways move from current levels. Dollar index has stopped declining and a breakout above 92 levels could put pressure in emerging markets. On the higher side the monthly resistance is placed at 15150 while on the downside supports are in range of 14380-14470 gap levels. Risk Reward is not in favour, one should book some gains and wait for declines to enter.

Ashis Biswas, Head of Technical Research, CapitalVia Global Research Limited

We believe the economic revival to fuel further by the measures taken in the recent union budget. The sharp increase in capital expenditure will keep the momentum of recovery and reforms. Additionally, the central bank’s intention to keep liquidity taps open will play a critical role in the market. Although the market is high, we don’t see the market is overvalued in terms of the fundamentals, but we believe the market sentiment is at the pick of optimism and an adjustment of it is more likely. We expect a sideways correction rather than a sharp correction this time. The Investor should not expect a significant discount this time as the bullishness is likely to stay. We recommend the investors liquidate 30-40% of their holding at the current level at its maximum. And wait for a 6-10% correction to re-enter or add into the existing portfolio.

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

The markets have closed well in the green with supporting volumes. 15000 has proved to be a psychological resistance but that should not deter the thought process on the trend. We continue to remain bullish and the Nifty has the wings to achieve 15200. A buy on dips strategy would be advisable. There is ample scope for the markets to correct during intraday sessions. These dips can be utilised to make fresh long positions for higher targets. This way the risk-reward trade-off would be favourable.