Sensex ends at nearly 1-month high, Nifty near-term support at 17807; Will Nifty hit 18100 soon-

Sensex ends at nearly 1-month high, Nifty near-term support at 17807; Will Nifty hit 18100 soon?

On the back of positive global markets, Indian stock market benchmarks BSE Sensex and NSE Nifty 50 settled more than a half a per cent up on Monday. India’s August CPI inflation, and July’s IIP data is scheduled to release later in the evening today. BSE Sensex gained 322 points or 0.5 per cent to settle at 60,115, while NSE Nifty 50 added 0.6 per cent or 103 points to finish trade at 17,936.35. Index heavyweights such as Reliance Industries, Infosys, Axis Bank, ICICI Bank, and Bajaj Finance, among others, contributed the most to the indices’ gain. Broader markets outperformed the equity frontliners. S&P BSE MidCap soared 1 per cent or 230 points to end at 26,167. S&P BSE SmallCap index added 1 per cent or 295 points to settle at 29,824.

Deepak Jasani, Head of Retail Research, HDFC Securities

Also read: CPI inflation may see marginal uptick to 6.75-6.9% on fall in crude oil prices, IIP may at come in at 5.7-5.9%

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

Firm global market cues triggered an upsurge in local benchmark indices as Sensex closed above the crucial 60,000 mark on buying in IT and realty stocks. In recent sessions, falling global crude oil prices and sliding US Dollar index have encouraged domestic investors to increase their equity exposure. Technically, the Nifty has formed a shooting star kind of candle formation near the important resistance level. A trend reversal is possible only after the dismissal of 17850. Above the same, the index could touch the level of 18000-18100. On the flip side, below 17850 selling pressure is likely to increase and could retest the level of 17750-17700.

Om Mehra, Technical Associate, Choice Broking

The index formed a bullish candlestick pattern on the daily chart. The broader markets also gained momentum after a mixed trade in the previous session. India VIX ended the session at 17.94 levels as VIX below 18 suggests the market seems to be enjoying stability. OI Data indicates, on the call side the highest OI is witnessed at 18000 followed by18200 strike prices while on the put side, the highest OI was at 17800 followed by 17700 strike price. Bank nifty has support at 40000 levels while resistance is placed at 41200. We suggest riding the positive rally for the next couple of days. Sectors like IT and Realty look attractive for the short to medium term.

Also read: MCX gold price to trade sideways to weak this week, investors await US CPI inflation data; check support level

Vinod Nair, Head of Research, Geojit Financial Services

Domestic economy is witnessing strong vigour and the same is assisting a steady growth in Indian equities. A 15.5% on-year increase in bank credits during August suggests that the economy is recovering rapidly. Due to rising food prices, domestic inflation figures are predicted to show a gradual rise from 6.7% in July which could add volatility in the short-term. Meanwhile, the world equity market is ignoring the fact that the Fed will retain its aggressive rate hike strategy given high levels of inflation assuming that much is factored in.

Mohit Nigam, Head – PMS, Hem Securities

On the technical front, the key resistance level for NSE Nifty 50 index is 18,100 and on the downside 17,700 can act as strong support. Key resistance and support levels for Bank Nifty are 40,900 and 40,000 respectively.