HDFC boosts Nifty Financial Service index to all-time high

Nifty Financial Services index gave its multiple resistance breakout at 10560-10570 levels, all thanks to HDFC, on Monday. HDFC which holds 9.4 per cent and 27.7 per cent in Nifty 50 and Nifty Financial Service index, respectively pulled both the indices upwards. Nifty Financial Services is currently trailing at all-time high levels of 10760.

Non-banking financial company HDFC is expected to raise Rs. 13,000 crore from GIC, KKR, Premji Group etc through preferential shares and QIP. The stock thereby opened with a gap-up and surged as much as 6 per cent. This led to a surge in the benchmark indices as well as the sectoral index.

Nifty Financial Services index opened with a gap up of nearly 50 points and has surged more than 2 per cent by now. The index witnessed a three-week consolidation breakout on the first day of the week itself. The index has formed a kind of Inverse Head & Shoulders pattern though on the upside. The neckline breakout was witnessed on Monday at the opening itself was supported by justifiable volumes while 14-period RSI spurted from 58 to 69 levels.

Going forward, we can expect some more up move in the index as a whole. The index holds potential upside of 200 to 250 points in the first place in the medium term.