Nifty reclaims and sustains above 20000; What lies ahead-

Nifty reclaims and sustains above 20000; What lies ahead?

After making a positive start to open above the 20100 level, the benchmark Indian equity index Nifty 50 lost the northward momentum and has been range-bound around 20050 on Thursday.

“The market is starting the day with a subdued yet cautious tone following yesterday’s impressive trading session. As we approach today’s expiry, there’s an anticipation that the Nifty’s positive momentum will persist, propelling it towards the 20,250 levels. Notably, the 20,000 Put strike on the downside holds substantial Open Interest (OI), expected to serve as a limiting factor against potential declines,” said Shrey Jain, Founder and CEO SAS Online.

“In Bank Nifty, a narrow trading range was sustained, with 43,500 serving as a pivotal level. Additionally, for the monthly settlement, there is noteworthy option writing observed at both the Put 43,500 and Call 44,000 strikes. Overall market sentiments remain optimistic, driven by a consistent trend of Foreign Institutional Investors (FIIs) turning buyers for five consecutive days, coupled with aggressive buying from Domestic Institutional Investors (DIIs), Shrey Jain added further.

Nifty 50 eyes 21000

Yesterday, on November 29, the benchmark Indian equity indices, NSE Nifty 50, marched northward to reclaim 20,000 after September 2023 and settled at 20,096.60, up 206.90 points or 1.04% from their previous close. Nifty had touched the unprecedented 20,000 mark on September 11, 2023 almost three months after scaling the 19,000 mark for the first time on June 28, 2023.

“The Nifty’s recent crossing of the psychological level of 20,000 and the BSE market cap’s ascent to the $4 trillion mark signal the start of a fresh momentum. Domestic liquidity has provided support, but the lack of foreign inflows due to high US bond yields has been a hindrance. Fortunately, interest rates in the US have peaked, and the dollar index is declining, which is expected to attract foreign institutional investor (FII) inflows into the Indian equity market. Despite strong fundamentals, volatility is expected leading up to the state election results. However, any weakness caused by this could present a compelling buying opportunity,” said Santosh Meena, Head of Research, Swastika Investmart.

Santosh Meena further stated that the market appears primed for a pre-election rally, and we can anticipate the Nifty soon surpassing 21,000. The level of 19,500 will now serve as a support level.