Support level climbs to 11400
The gains were on the back of strong foreign fund buying in the Index heavyweights like ITC, RIL and Infosys.
The market on Tuesday continued its winning streak for a seventh consecutive session with the Sensex rising 268 points to close at 38,363.47, a six-month high.
The Nifty closed at 11,509.80, up 70.20 points. The gains were on the back of strong foreign fund buying in the Index heavyweights like ITC, RIL and Infosys.
Banking, pharma and PSU stocks are in the limelight. Banks giants like HDFC Bank, SBI, PNB, Bank of Baroda are attracting institutional buying. Investors and traders who are on the sideline in current rally now also put their bets on benchmark and bears who make their bearish bets on the Nifty are now reverse their position by short covering this also makes the Bank Nifty to its a new all-time high.
Technical analysts said the Nifty has formed a large bullish candle on the weekly charts and this momentum can take nifty to its all-time high in short time frame.
"After making a Doji Formation on Monday's trading session on Daily charts in the Nifty50, going ahead we expect the Index is consolidating between 11600 to the upper side 11200 on the lower bottom side this consolidation will help the Nifty to moves for a new high in the near term," said Debabrata Bhattacharjee, Head of Research, CapitalAim.
According to derivative analysts, blue-chips pulls the Nifty above 11500 while option writers run for cover as buying continued in the broader market.
"We believe the support established at 11300 is now inched up to 11400 while the upside is now open to 11640 - 11650. Maintain buy on dips as a strategy," said Mustafa Nadeem, CEO, Epic Research.
There was some writing in 11500 - 11600 CE which was observed but it was today due to buying at lower levels we have seen writers covering their position while long built up was seen in 11500 - 11600 by closing. Strikes on PE side like 11500 - 11600 also saw short built up. This is a post-breakout market with a very strong undertone that is in full grip of bulls, analysts said.
"Since the first week of March, the Nifty and the Nifty Bank Index have been witnessing a positive momentum. In this course of action, the Bank Nifty went on to make fresh record highs and the benchmark Index Nifty too is not so far from this achievement. The upmove has been supported by the broader market participation which is a sign of a robust rally. We believe there are still good opportunities seen in stock specific movement and hence, traders should focus on the same with a positive bias," Ruchit Jain, Equity Technical Analyst, Angel Broking said.