Nifty reaches landmark level of 17,000; broader market outperforms!

Market Update at 12:35 PM: Nifty has touched a milestone level of 17,000 on Tuesday. It took almost 19 trading sessions for Nifty to reach this level of 17,000 from the 16,000 mark.   

The broader market indices outperformed with Nifty Midcap 100 and Smallcap 100 inching higher by 0.57 per cent and 0.71 per cent, respectively.   

All the sectoral indices are trading in green with Nifty PSU Bank and Nifty Metal being the top gainers.   

I’m sure you must have heard the idiom, ‘the sky is the limit.’ Similarly, it seems that Nifty is following the same as it moved like there is no limit. Nifty opened the session in positive territory and thereafter, went from strength to strength to closed at fresh records high i.e. above the 16,900 mark for the first time ever, up by 1.35 per cent.   

It was heartening to see that the rally was broad-based as a majority of the sectors participated except for Nifty IT. Moreover, the broader market indices outperformed the frontline gauges with Nifty Midcap 100 and Smallcap 100 surging 1.94 per cent & 1.53 per cent, respectively.

On the daily chart, Nifty formed a sizeable bullish candle. Going ahead, the level of 17,000-17,045 is likely to act as a stiff resistance as per the rising channel. Furthermore, with a strong move on Monday, the index had managed to close above the upper Bollinger band.   

The 14-period RSI has marked a 14-period high and also, closed above the prior swing high, which is a positive sign. However, it has reached an extreme overbought condition in the daily timeframe. The MACD histogram indicates strong bullish momentum.   

On the downside, the level of 16,800 is an important support for Nifty. As long as the index stays above this level, adopt a buy-on-dips strategy.  

All eyes would be on Bank Nifty on Tuesday as the index has outperformed Nifty 50 index, and also, formed a strong bullish candle. The 14-period RSI entered into bullish territory as it has moved above the 60-mark.   

Going ahead, the level of 36,520-36,650 is likely to act resistance area and once the index moves above this zone, expect a move of 300-400 points.