Mumbai, November 26: Markets on Tuesday opened at fresh all-time highs with the benchmark 30-share index hitting the 41,000 mark for the first, going up over 200 points in the early trade. Sensex touched 41,102 points during the trade. Nifty too touched 12,126 mark thus breaching its previous high of 12,103 in June this year. The Bank Nifty index also peaked new highs at the over 31,796 levels.
Santosh Meena, Senior Analyst, TradingBells, says the market is rejoicing near an all-time high where Sensex is already trading at fresh all-time high while Nifty and Bank Nifty are at a kissing distance from the all-time high.
“We are already in a bullish trend where one step backward and two steps forward texture is continued in the market. Global cues especially positive development on the US-China trade deal front is driving the latest momentum in the market,” Meena said.
There is a good chance that Nifty may hit fresh all-time going ahead and continue its bullish momentum for a move towards 12,300 in this expiry itself. In the downside, 12,000 will act as strong support as there is significant put writing at 12,000 strike price.
Earlier in the day rupee also treaded on an upward trajectory with the Indian currency rising to 71.66 against the USD, as against previous days close of 71.73, analysts said.
On Monday, on derivative front, heavy short positions were created in index future by FIIs around 12,000mark and there were many short positions at 12,000 strike call option by many traders as the market was showing some tiredness in 12,000-12,100 zone but they didn't get follow through to their short positions as Nifty witnessed smart bounce back from its 20-DMA of 11,880 with the help of positive global cues that pushed bears on backfoot to cover their short positions and their short covering led a stellar rally in market in yesterday’s trading session.
“Bank Nifty is also likely to take out its previous high of 31,783 and it may head towards 32,500 levels in the coming days where 31,250 will act as strong support in the downside,” Meena said.
According to Mustafa Nadeem, CEO, Epic Research, on Monday, the market was able to control the bears with Nifty expanding and closing above these critical levels of 1,2000 – 12,050 which has been controlled by bears. “Further support of positive data from derivatives points out a bullish week ahead. We believe the levels of 11,800 – 11,750 will now act as a short term base for the next leg of the bullish rally,” Nadeem said.
Shares of oil and gas major Reliance Industries jumped to a record highs of Rs 1,576 a share after rising over 1 per cent in early trade on Monday. With this the market capitalization of RIL has gone closer to Rs 10 lakh crore. Recently RIL’s teelcom arm Reliance Jio said that from December onwards it will increase tariff, thus sending positive waves across segments in the company. RIL selling stake to Saudi Aramco has boosted the investor confidence in the company.