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Updated December 27th, 2023 at 17:02 IST

Nifty has potential to test 22,150 in near term, say analysts

Sensex ended 702 points higher, settling at an all-time closing high of 72,038. The Nifty 50 index gained 213 points to close at 21,654.75.

Reported by: Business Desk
Sensex
Sensex ended 702 points higher, settling at an all-time closing high of 72,038. | Image:Republic
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Indian equity markets extended their winning streak for fourth consecutive session on Wednesday, witnessing the Sensex surge past the 72,000 mark for the first time. The Nifty 50 index breached the 21,650 level for the first time. The strong performance was attributed to robust contributions from key stocks such as HDFC Bank, Infosys, Larsen & Toubro, Bharti Airtel, and Ultratech Cement.

The Sensex reached an unprecedented high, surging by 783 points to touch 72,119.85, while the Nifty 50 climbed 234 points to a record high of 21,675.75. This milestone was achieved in just seven sessions, with the Sensex moving from 71,000 to 72,000.

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Sensex ended 702 points higher, settling at an all-time closing high of 72,038. The Nifty 50 index gained 213 points to close at 21,654.75.

Market analysts expect further extension of the prevailing bullish trend, with Nifty eyeing 22,150 levels. The alignment of the banking index and favourable global conditions is expected to be crucial in sustaining this momentum, stressing on the importance of stock selection for traders. Index majors and quality midcaps are recommended for fresh buying opportunities.

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The domestic equities received a boost from positive global cues and a significant decrease in India's current account deficit to 1 per cent. Nifty's fresh high of 21,676, supported by heavyweight stocks, resulted in a substantial gain of 213 points (1 per cent), closing at 21,655. All sectors finished in the green, with PSU Banks and Metals emerging as top gainers, each recording a 1-2 per cent increase. The cement sector shone brightly, driven by expectations of robust volume growth.

“Amid healthy macro data and a global market rally, Nifty achieved new highs even during the holiday season. While the upcoming derivatives monthly expiry on Thursday may introduce some volatility, the overall market sentiment remains bullish, showcasing steady gains in recent weeks,” said Kunal Harsh, an independent market analyst said.

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Buying interest extended across sectors, with the Nifty PSU Bank index leading the charge with a gain of 2.06 per cent. The Nifty Bank, Auto, Metal, Private Bank, and Financial Services indices also witnessed increases ranging from 1 per cent to 1.5 per cent.

In the mid- and small-cap segments, buying interest persisted, reflected in the 0.38 per cent rise in the Nifty Midcap 100 index and a 0.45 per cent advance in the Nifty Smallcap 100 index.

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Ultratech Cement emerged as the top Nifty gainer, with the stock soaring by 4.5 per cent to achieve a record high of Rs 10,470. Other notable gainers included Hindalco, Bajaj Auto, JSW Steel, Tata Motors, Grasim, Bharti Airtel, and Tata Consumer Products, each recording increases ranging from 1.95 per cent to 4.25 per cent.
 

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Published December 27th, 2023 at 16:51 IST

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