Nifty trades above 16,500; TCS and Infosys trade at fresh all-time high; broader markets underperform!

Market Update at 3:00 PM: Indian benchmark indices are trading near the day’s high and also, at a fresh all-time high. The bulls are seen in a merry mood as after opening higher, they have gone from strength to strength as the day progressed. Nifty is trading above the 16,500 mark for the first time in history.   

The heavyweights like Reliance Industries, HDFC twins, TCS, and Infosys are aiding the cause further as combinedly, they have contributed 121 points to Nifty’s kitty.   

The broader markets are seen trading just below the neutral line. As a result, the advance-decline ratio is slightly favoured on the decliners' side.   

The equity benchmark indices made a new closing high with the broader market participation.      

Nifty closed at 16,364.40 with gains of 82.15 points. Barring Nifty Pharma index, all the other sectoral and thematic indices ended with positive gains.     

Nifty formed a strong bullish candle after five days of indecisive and sideways action. It gained 69.80 points in the last five trading sessions. It closed at a five-day high; in fact, by closing above 16,369, it has broken out of a five-day base. During the last five days, it experienced higher volatility with negative market breadth.      

However, today, the breadth is extremely positive across the broader indices. Institutional participation has improved while every low is attracting buying support. With the five-day consolidation, the support levels moved further high. As Nifty registered a closing high, the positive bias will continue as long as it closes below the prior day low. Wednesday's low of 15,162, which is the low of the last five-day consolidation, will be a key support for now. The RSI closed above the prior swing high, and the MACD histogram improved with today's move.   

If Nifty sustains above the levels of 16,286, the immediate targets would be placed at 16,485 and 16,685. Keep a trailing stop-loss according to the risk level and continue the long positions.