Nifty hits fresh all-time high; Nifty IT and FMCG lead from the front!

Market Update at 02:30 PM: Nifty logged fresh record highs of 17,242.50 on Thursday, surpassing its previous all-time high of 17,225.75, which was registered in the prior trading session. Nifty is up by nearly one per cent.   

The broader market indices as well are seen in buoyant mood with Nifty Midcap 100 and Smallcap 100 jumping over 1 per cent each.   

Among the sectoral indices, barring Nifty PSU Bank and Nifty Auto, all other indices were seen trading in green with Nifty IT & FMCG leading from the front.   

The condition of D-Street on Wednesday was like any other Bollywood movie wherein the first half was full of happiness as indices logged fresh all-time highs. On the other hand, the second half of the trading session consisted of sad elements as the indices not only trimmed their early gains by ending their winning streak but also, settled in red on Wednesday. Meanwhile, Nifty and Sensex ended down by 0.33 per cent & 0.37 per cent, respectively.   

The broader markets outperformed the frontline indices with Nifty Midcap 100 and Smallcap 100 advancing by 0.75 per cent and 0.34 per cent, respectively. The market breadth was skewed in favour of declines.   

On the daily chart, Nifty has formed a bearish candle, but it continues forming higher highs. Interestingly, despite the fact that Nifty declined by 150 points from the day's high, it has not given any bearish signals yet on a daily timeframe. A close below 17,000 may give a weak sign. The MACD has given a sell signal on the hourly chart, but the RSI is still above the 60 zone. Along with this, the major indicators are in the overbought condition; hence, a phase of consolidation would be seen before taking a decisive trending direction. As the weekly derivative expiry is in place, the volatility could be the hallmark of the day.   

On September 1, market participants were worried about the implementation of the last leg of peak margin, and many were of the view that volumes would shrink so on and so forth.

However, on September 1, NSE Cash segment traded value stood at Rs 64,228.35 as against the average daily turnover of Rs 62,923 crore in August and Rs 62,653 crore in July. So, NSE sees a slightly higher turnover against the daily average.   

Interestingly, the GST collection for the month of August stood at Rs 1.12 lakh crore, crossing the important psychological mark of Rs 1 lakh crore for the second month in a row.