2 hours agoAuthor: Nikhil Bhatt
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Many ups and downs have been recorded in the working of the stock market on Wednesday. The stock market has registered a surge for the fourth consecutive day. After volatile trade on Wednesday, Sensex rose 36 points to 77338 points while Nifty futures closed down 70 points at 23498 points. Bank Nifty futures rose 1018 points to close at 51435 points.
Bank Nifty touched 51885 level for the first time in Wednesday’s trade. Nifty Future Index 23667 and Sensex hit a new record high of 77851. The Nifty IT index registered a marginal gain while the Nifty Bank index managed to close with a gain of two percent. The Nifty Financial Services index also rose while all other Nifty sectoral indices closed in the red.
Asian stock markets were trading on a strong note on Wednesday morning. Domestic stock markets closed at record highs on Tuesday. Domestic stock market is benefiting due to positive cues from the global market. The presidential election is going to be held in America in November and due to this the Indian stock markets are also seeing a boom in the hope that the government will reduce the interest rates.
The stock market saw several ups and downs during the day. Among the top sectoral gainers of the index were shares of private banks. Talking about the shares of the companies that gave multibagger returns to the stock market investors, the shares of Axis Bank, HDFC Bank, IndusInd Bank, Kotak Mahindra Bank, Infosys, Wipro and HCL Tech stopped rising, while on the other hand Asian Paint, Power Grid, Ashok Leyland, Larsen, Tax Mayo. A lot of weakness has been seen in the shares of Railways and JK Paper. Talking about the shares of PSU companies, Indian Railway Catering, Coal India, GAIL India, Hindustan Petroleum, Bharat e. Shares of Bharat Heavy Electricals Limited, Cochin Shipyard, Great Eastern Shipping, West Coast Paper Mills, Container Corporation, Bharat Dynamics, Hindustan Aeronautics closed higher.
Out of a total of 3974 scrips traded in BSE, the number of decliners was 2235 and the number of gainers was 1634, leaving no change in the prices of 105 shares. While in 04 stocks there was a bullish upper circuit of only buyers in 04 stocks against the bearish lower circuit of only sellers.
Nifty Future Technical Levels
Nifty Future Close :- ( 23497 ) :- The next move is likely to see the Nifty future touch the all-important level of 23606 points, 23676 points from 23570 points in relation to the first of 23303 points and the all-important strong stoploss of 23272 points. Cautious positioning around the 23303 point.
Bank Nifty Future Technical Levels
Bank Nifty Future Closed :- ( 51435 ) :- The next swings are likely to see the Bank Nifty Future touch the all-important high of 51008 points first and 51808 points from 51570 points to 51676 points, the all-important strong stoploss trading at 50808 points. Cautious positioning around the 51808 point.
Specific technical level regarding future stock
Reliance Industries ( 2916 ) :- The share price of this company, the leader of Reliance Group, is currently trading around Rs.2880. Buyable with a stoploss of Rs.2860, this stock is likely to register a price of Rs.2939 to Rs.2953 in a short period of time…!! Bullish focus on Rs.2960.
ACC Limited (2625) :- Positive breakout around Rs.2570 as per technical chart…!! Buyable with support of Rs.2555, the stock is likely to touch Rs.2647 to Rs.2660.
Shriram Finance (2793):– According to the technical chart, this stock from the Non Banking Financial Company sector has the possibility of a target price of Rs.2770 to Rs.2744 with a profitable sell around Rs.2828. Consider a trading stoploss of Rs.2840.
Kotak Mahindra Bank (1747) :- The stock is sellable with a stoploss of Rs.1784 while registering an overbought position around Rs.1774. It is likely to show the price of Rs.1720 to Rs.1707 in a phased manner…!! Consider bullish above Rs.1790.
Future direction of the market…
Friends, in the coming days the Indian stock market will be keeping an eye on the important 100 days of NDA government’s performance as well as the new government’s cabinet allocation and upcoming plans. So in the absence of any unexpected factors in the next week, volatility can be seen in the Sensex and Nifty futures. So now the market can be seen entering the consolidation phase in the coming days.
High volatility can be seen in the stock market. After the Modi government came back to power at the centre, now the focus on the central budget and the incentives, measures to speed up the economic development are expected, as the buying in the stocks of funds continued, the Nifty based market made a history of new highs.
The election result and then the positive factor of monsoon, the market may recover from the shock and ride on the bullish path again and in the event of forming a stable government led by the BJP as the largest party at the center with a majority of the NDA, the market will witness a historic boom after the turmoil. The market has shown a historic boom for 5 consecutive days after Prime Minister Narendra Modi and BJP claimed to form a hat-trick NDA government over the weekend.
The author is a SEBI registered research analyst and proprietor of Investment Point.
