Sensex ends at nearly 1-month high; Nifty may hit 18100, momentum indicator enters into bullish crossover

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BSE Sensex and NSE Nifty 50 settled the weekly F&O expiry at nearly one month high, gaining 1 per cent. BSE Sensex gained 659 points or 1.12 per cent to settle at 59,688, while the NSE Nifty 50 surged 1 per cent to finish trade at 17,798.75. Index heavyweights such as ICICI Bank, Axis Bank, Infosys, HDFC Bank, State Bank of India (SBI), among others contributed the most to the indices gain. Broader markets too ended in green on Thursday. S&P BSE MidCap settled 0.3 per cent or 76 points up at 25,895, while BSE SmallCap gained 0.6 per cent or 176 points to finish at 27,475.

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The domestic financial market experienced a wave of optimism tracking strength across global markets as oil prices eased, cooling investor concerns about rising inflation. Despite premium valuations, consistent FII inflows are aiding Indian bourses to stay resilient. On the sectoral front, auto stocks were in focus as retail sales of automobiles grew 8.31% YoY in august while banking stocks moved in sync.

Rupak De, Senior Technical Analyst, LKP Securities

The Nifty moved above the falling trendline on the daily chart. The setup looks bullish after the trendline breakout. Also, the index has moved above its recent consolidation on the daily timeframe. The momentum indicator has entered into a bullish crossover. Over the short term, the trend is likely to remain positive with a potential to reach 18100. On the lower end, support is visible at 17700.

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Deepak Jasani, Head of Retail Research, HDFC Securities

Asian stocks (except China and Hongkong) rode a global rally on Thursday, making broad gains as oil prices steadied at lower levels not seen since before Russia’s invasion of Ukraine. European stock markets traded higher Thursday, boosted by the positive close on Wall Street, with investors focusing on the latest European Central Bank policy-setting meeting. Nifty broke above the recent high of 17777 easily. Now the next tough resistance is 17992. On falls, 17651 could be the support.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

Positive global cues helped markets rebound from 2-day losses led by banking stocks. India’s growth resilience is something that investors are betting on considering concerns of global slowdown amid rising interest rates. Technically, the Nifty took support near 17690 and reversed thereafter. On daily charts, the index has formed a small bullish candle and has reclaimed the 20 day SMA (Simple Moving Average) level as well. For the trend following traders now the 20 day SMA or 17650 would act as a key support level. Above which, the index could rally till 17900-18000. On the flip side, below 17650, bulls may prefer to exit from the long positions.

Kunal Shah, Senior Technical Analyst, LKP Securities

The Bank Nifty index surpassed the crucial hurdle of 40,000 on a closing basis which clears the room for further upside on the index. The index momentum oscillators are in the strong buy zone which confirms the internal strength. The index is likely to test the level of 41,000-41,500 on the upside and the lower end support remains at the 39,000 level.