The Nifty 50 hit a fresh high of the 18,000 for the fist time on October 11 led by banking stocks. The journey from 17,000 to 18,000 was relatively quicker than the time taken to cross the last 1,000-point milestone. The index breached 17,000 on August 31, 2021. The 50-stock benchmark took 28 sessions to rally from 17,000 to 18,000. Sensex was trading above 60,300-mark on Monday.
“Nifty hits the 18,000 mark, a record high, on the back of strong gains witnessed in banking stocks, particularly HDFC Bank, ICICI Bank, Kotak Mahindra. Even bellwethers such as Reliance Industries contributed to today’s historic move. However, the notable exception today was TCS, which is down 5 per cent, post its results announcement,” said Aamar Deo Singh, Head Advisory, Angel One.
Indian stock market had a spectacular year on the back of the support from retail investors and domestic institutions. The continuous support from the government to ease the stress of the telecom sector, the production-linked incentives for auto and auto-part manufactures helped to life the mood in the stock market amid weak global cues. The Nifty 50 has gained more than 27 per cent so far in 2021.
The next stop for Nifty: 18,500?
“The index resumed its prior rising trend and closed week with 2 per cent rise. While IT, media and auto sectors witnessed strength, pharma and FMCG sectors remained under pressure. The key technical indicators are positively poised. We continue to believe that undergoing positive momentum could take the index towards 18,500-18,700 levels. In case of decline, the Nifty index will find strong support at around 17,600-level,” said Vikas Jain, Senior Research Analyst at Reliance Securities.
The benchmark indices rallied on Monday led by the power, auto, banking and realty stocks. At 1110 hours, the Nifty was up 112.45 points or 0.63 per cent up at 18,008.40. Sensex was up 313.37 points or 0.52 per cent at 60,374.50. Tata Motors, Coal India, Maruti Suzuki and NTPC were among the top gainers on Nifty 50 on October 11. TCS was among the biggest loser on Monday after it had announced September quarter results on October 8. TCS share price dropped 5.48 per cent to Rs 3,720 at the time of writing this article. Tech Mahindra, Wipro were among the top losers in the Nifty 50 pack. Maruti Suzuki, NTPC Kotak Mahindra among the top gainers on Sensex on October 11 while TCS, Tech Mahindra were the biggest losers.
Nifty Touched 18,000: What Investors Should Do Now
“Advances are almost 3 is to 1, clearly indicating a broad-based rally. Further. open Interest data also provides bullish clues. Bears are nowhere to be seen, and its Bulls all the way so far. Stay invested but be prepared to live with volatility in coming weeks and months,” Singh added.
“Loose monetary policies across the globe including India & unprecedented buying euphoria have led to Nifty hitting 18,000 levels in the fastest ever bull rally. However, investors should keep booking profits on every rise as if and when a correction happens, it will be sharp. Immediate strong support for Nifty remains at 17,860,” said AR Ramachandran, co-founder & trainer, Tips2Trades.