Shillong, September 12: During a robust trading session, the Nifty index made history by surpassing the significant psychological milestone of 20,000.
This achievement comes with positive momentum and the potential for further gains, according to Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher. The initial target appears to be 20,400 levels.
As per IANS, the broader market is displaying remarkable strength, indicating a sustained bull run with significant upside potential in the days ahead, as noted by Parekh. Support for the day is identified at 19,850 levels, while resistance is seen at 20,150 levels.
V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, attributes this rally to optimism regarding India’s growth prospects, particularly in a world characterized by low growth and China’s rapid deceleration. This positive sentiment has driven the Nifty to cross the psychologically significant 20,000 mark.
Furthermore, foreign institutional investors (FIIs) have joined the rally with a net purchase of Rs 1,473 crore, following five consecutive days of selling in the cash market. Vijayakumar highlights that this FIIs’ investment decision, amidst a US 10-year yield of 4.29 percent, reflects the influence of the ‘FOMO’ (Fear Of Missing Out) factor.
Despite concerns about overall market valuations, the participation of well-valued large banking stocks and Reliance Industries Limited (RIL) contributes to the health of this rally. Vijayakumar advises investors to steer clear of frothy segments in the mid-and small-cap space. In the near term, market consolidation around current levels is anticipated.
On Tuesday, the BSE Sensex recorded a 47-point increase, reaching 67,175 points, with L&T leading the gains with a 3 percent rise.