Equity benchmark Sensex surged 210 points to end at a fresh peak on Tuesday, tracking gains in index majors Infosys, TCS, HUL and Tech Mahindra.
Benchmark indices ended the day’s session on a flat note and selling interest witnessed in metal stocks with Nifty Metal closed 2.30 percent down and Nifty 50 ended 0.31 percent up.
The NSE Nifty50 touched a record high of 16,591.4 points, while S&P BSE Sensex reached 55,688.5 points during the session.
"Nifty gave a swift up move from its days low of 16,495 and closed at 16,605 up by 40 points. Nifty has strong support at 16,450 and 16,500 levels. Nifty is in a strong uptrend and will test 16,700 and 16,750 in the next trading sessions," said Gaurav Udani, CEO & Founder, ThincRedBlu Securities.
Sugar stocks rallied after the Indian Sugar Mills Association (ISMA) wrote to the Prime Minister’s office to increase prices. Spicejet announces transfer of logistics business to SpiceXpress. Vedanta shares fall 10 percent, heading for the biggest drop since October 12. European stocks hit one-week low on virus worries and China stocks fall the most in three weeks amid economic gloom, fresh tech crackdown, said Mohit Nigam, Head-PMS, Hem Securities.
In the 50-share pack Nifty, Tata Consumer Products was the biggest gainer, up 3.82 per cent. Wipro, Tech Mahindra and Nestle were among other gainers. Adani Ports was the top loser in the pack, down 2.02 per cent. Tata Motors, Coal India and Indusind Bank were other losers in the pack.
Sachin Gupta, AVP, Research, Choice Broking said, "Technically, the Index is in a bullish trend and trading upward continuously with higher high & higher low formation from the last couple of days. On an hourly chart, it has given a breakout of immediate consolidation levels and managed to close above the 16500 marks. Moreover, the Parabolic Sar & Super trend is also supporting the index to move upward. Furthermore, the MACD & Stochastic has indicated the positive crossover on a weekly chart, which suggests bullish strength in the index. At present, the nifty index has immediate support at 16,450 levels while resistance may come around 16,800 levels."
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd, said "Markets maintained their upward trajectory thanks to a sharp rally in IT stocks, as investors bet on recovery on the back of states relaxing lockdowns and opening up their economies. On daily charts, Nifty has formed a breakout continuation formation even as intraday charts suggest traders may prefer to take some profits near the 16700 resistance level. As long as Nifty trades above 16,520, the uptrend formation could continue up to 16,675-16720 levels. On the flip side, trading below 16,520 could trigger a quicker intraday correction up to 16,460-16,410 levels."
Advance decline ratio had improved in the morning of August 17 compared to the previous day, but late selling in the broader markets took it down again in the negative in line with the recent numbers, said Deepak Jasani, Head-Retail Research, HDFC Securities. "Nifty recovered smartly on Tuesday from the intra day lows, but the broader market is yet to bounce up. Sector rotation is being seen with IT and FMCG rising while Metals and Telecom undergoing correction. Nifty could continue to rise gradually but the broader markets could take time to complete their correction."
