Shillong, December 15: The Indian stock market is poised for a higher opening on Friday, riding the wave of positive global cues, with both the Sensex and Nifty 50 gearing up for another record-setting rally. Gift Nifty trends suggest a gap-up start, with trading around 21,423, surpassing Nifty futures’ previous close of 21,353.
As per Live Mint, Thursday saw domestic benchmark indices closing at record highs, propelled by the strength of IT stocks and optimistic investor sentiment. The Sensex surged 929.60 points to reach 70,514.20, while the Nifty 50 rose by 256.35 points, a notable 1.23%, settling at 21,182.70.
The Nifty 50 index displayed a decisive upside breakout, marked by a long-legged doji candle pattern formation on Wednesday. The significant opening upside gap from the recent session, if left unfilled in the next 2-3 sessions, could signify a robust uptrend, as explained by Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
Shetti maintains a positive outlook on the near-term market trend, suggesting the potential for the Nifty to reach the crucial resistance level of 21,550 – a 78.6% Fibonacci extension – in the upcoming week. The index’s substantial upmove on December 14, gaining 256 points, signals a breakout from consolidation, fueled by increased long positions.
Rupak De, Senior Technical Analyst at LKP Securities, affirms the market’s bullish sentiment, emphasizing the index’s comfortable position above key moving averages. With significant Put writer positions at 21,000, De identifies strong support at this level. The prevailing positive momentum positions the market for further gains as it maintains resilience amidst global and domestic factors.