Sensex closed above the 60K mark on Wednesday after four months amid positive global cues. Sensex climbed 418 points to 60,260 and Nifty gained 119 points to 17,944. Last time, the 30-stock index hit the 60K level on April 5, 2022. The index closed at 60,176 in that session. Of 30 Sensex stocks, 23 ended in the green. Consumer durables and IT stocks were the top sectoral gainers with their BSE indices zooming 451 points and 315 points, respectively.
Market breadth was positive with 2,019 stocks ending higher against 1,405 stocks falling on BSE, while 132 shares were unchanged. Market cap of BSE-listed firms rose to Rs 279.79 lakh crore.
Here’s a look at what analysts said about the direction the market is likely to take today.
Deepak Jasani, Head of Retail Research, HDFC Securities
“Markets are less than 4 per cent off their life time highs. Nifty continues its relentless rise and is currently outperforming global markets. Though there are no signs of reversal, the current uptrend is mature. On upmoves, 18,114 could act as a resistance while 17,719 is a support.”
Sahaj Agrawal, Head of Research- Derivatives, Kotak Securities
“Nifty has staged a strong recovery in the past few weeks. This move has pushed the markets out of the consolidative/corrective phase it was in since past few months. Any correction in the near term should be used for buying for the medium-term uptrend. An extended phase of consolidation is possible before the index attempts to move towards the 18,600 mark. IT stocks remain strong while Metals continue to consolidate. Value is seen in select midcap stocks.”
S. Hariharan, Head- Sales Trading, Emkay Global Financial Services
“Banks, industrials and autos have been the leaders and continue to attract incremental flows. While Metals names have seen some short covering, weakening global growth impulses would act as headwind to any meaningful upward revisions to earnings estimates. IT appears most vulnerable in this environment, due to its leverage to US and EU growth.”
Osho Krishan, senior analyst – Technical and Derivative Research, Angel One
“Looking at the recent developments, the undertone is likely to remain in favor of the bulls, with significant traction seen outside the indices. Hence it is advisable to keep identifying apt themes and potential movers within the same, which are likely to provide better trading opportunities. Meanwhile, it is also advisable to keep a close tab on global developments.”
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
“Technically, the market is consistently forming higher high and higher low series formation, indicating continuation of an uptrend in the near future. The Nifty has also formed a bullish candle on daily charts that also supports the uptrend. However, a quick intraday correction is not ruled out if the index trades below 17,850, and below the same it could touch 17,700-17,680 levels. On the flip side, above 17,850 the first upside target for the index would be 18,000 and on further upsurge it could move up to 18,175.”