Nifty crossed 18,000 mark for first time; IEX, Tata Power and MCX trade at fresh highs!

Monday’s trading session would be engraved in the book of records as a historic day for the Indian benchmark indices as Nifty

Market Update at 01:20 PM: Monday’s trading session would be engraved in the book of records as a historic day for the Indian benchmark indices as Nifty moved past its important psychological mark of 18,000 today. Nifty took about 28 trading sessions to reach the landmark of 18,000 from 17,000 levels.  

Among the stock-specific action, IEX has logged double-digit gains while Tata Power and Teamlease Services have jumped over 9 per cent each. MCX has also gained over 7 per cent along with Torrent Power.

Market Update at 9:55 AM: The Indian benchmark indices did what they are best known for! Nifty has logged a fresh all-time high of 17,957, surpassing its previous all-time high of 17,947.65, which was registered on September 24. Reliance Industries, followed by HDFC Bank, were the top two contributors for Nifty 50 index.   

Among the sectoral indices, barring Nifty IT and Nifty Media, all other sectoral indices were in green with Nifty Auto gaining the most as it has jumped over 2 per cent.   

The broader market indices i.e. Nifty Midcap 100 and Smallcap 100 rose by 0.37 per cent & 1.20 per cent, respectively.  

Nifty registered the highest weekly closing in history. In the middle of the last week, global jitters were faced by the market participants but by the end of the week, the global landscape changed, which aided risk-on sentiment in the Indian markets.   

Nifty gained 363.15 points or 2.07 per cent during the last week. BSE Sensex also gained by 2.2 per cent. Nifty Midcap-100 and Smallcap-100 indices are up by 3.4 per cent & 3.7 per cent, respectively. On the sectoral front, Nifty Auto, IT, and energy indices closed with 4 per cent-4.5 per cent. FMCG & pharma indices plunged 1 per cent and 0.5 per cent, respectively. All the other indices decently gained over one per cent. FIIs sold Rs 3,554.26 crore while DIIs bought Rs 2,844.97 crore during the last six sessions. The market breadth was in favour of advances.   

Technically, the market is poised for an interesting price action next week. It formed a very rare pattern on the weekly timeframe, known as 3IB. As of now, there is no trend change implication on the chart of Nifty. Last Wednesday's bearish engulfing bar failed to get a confirmation for its negative implications. Most importantly, Nifty has not closed below the previous week's low since July this year. It formed parallel tops and higher bottoms for the last three weeks, which is a bullish pattern. If it closes above 17,948, it would result in a fresh bullish breakout.   

Nifty closed 1.4 per cent above the 20-DMA and 5.08 per cent above the 50-DMA. As it trades above the key moving averages, we expect the index to continue with its upmove. However, a close below 20-DMA of 17,648 would be negative for the index.    

For the last ten trading days, Nifty has been trading in the range of 495 points. The present range of 17,947.85-17,452.90 is clearly above the 20-DMA and is forming higher lows.   

The index is at a new high but the RSI has yet to make a high. This divergence is because of the consolidation. If the RSI moves above 68 along with Nifty above 17,948, it is likely to give a sharp move. The RSI formed a double bottom pattern, which is a bullish pattern. Another important factor is that the positive directional movement indicator +DMI and the trend strength indicator ADX are above the zone of 25, which is positive for the index. The -DMI has been sustaining below the zone of 25 since the July breakout. The above factors show that there is a technical strength in the market.