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Stock Market Bulls Charge Ahead As Nifty Hits Record Highs

10:33 AM Dec 06, 2023 IST | 8PM News Desk
stock market bulls charge ahead as nifty hits record highs
Stock market bulls charge ahead as Nifty hits record highs

Mumbai (Maharashtra) [India] : The stock market opened on a positive note, with indices maintaining their upward momentum, signalling a bullish trend.

Bulls have taken firm control, and despite potential challenges, the Nifty’s momentum remains strong.

The Sensex opened 294.06 points higher at 69,584.29, while the Nifty opened 78.95 points up at 20,934.65. Among the Nifty companies, 33 witnessed advances, while 17 faced declines.

In the Nifty firm, LTIMindtree, Wipro, UPL, Tech Mahindra, and ITC emerged as the top gainers, showcasing the strength of certain sectors. Conversely, Bajaj Auto, Eicher Motors, ICICI Bank, Hindalco, and Hero Motocorp faced declines in the early market hours.

Varun Aggarwal, founder and managing director, Profit Idea, said, ‘Bulls have taken full charge. We suggested that in spite of all odds, Nifty momentum remains bullish. Expect the market to hit 21234-21410 in the medium term. For the short term, we expect that around 21k, Nifty should face resistance and can retrace back a bit. RSI on a daily time frame is overbought and some correction should come before resuming further bull trend. In such scenario, investors and traders should keep trailing stop loss or hedge their portfolios with bearish risk-defined strategies’.

Analysts anticipate the market to reach levels between 21,234 and 21,410 in the medium term. However, caution is advised for the short term, as around the 21,000 mark, Nifty might encounter resistance and experience a retracement.

Aggarwal said, ‘Bulls have taken full charge. We suggested that in spite of all odds, Nifty momentum remains bullish. Expect the market to hit 21234-21410 in the medium term. For the short term, we expect that around 21k, Nifty should face resistance and can retrace back a bit. RSI on a daily time frame is overbought and some correction should come before resuming further bull trend. In such scenario, investors and traders should keep trailing stop loss or hedge their portfolios with bearish risk-defined strategies’.

Nifty has been displaying a robust bull momentum, resembling a ‘bullet train’ in recent days. The index has achieved lifetime highs, with Nifty futures trading above 21,000. The spot index reached a high of 20,958.65.

Analysts remain positive in several sectors, including petrochemical, IT, FMCG, media, metals, and banking. The momentum shift is expected to benefit investors, and despite the market rally, many small and mid-cap stocks are available at discounted prices.

Aggarwal said, ‘We remain positive on petrochemical, IT, FMCG, Media, Metals, and Banking sectors. Momentum shift will be great & many small, mid-cap stocks are available at good discounts despite the rally on the Index. Investors should stay invested in this golden opportunity. India remains the hot spot for investment and we will continue to see FII’s & DII’s pouring in money. Larger time frame, Nifty is very bullish. Don’t get trapped by looking at Index value. Stay invested’.

Caution is advised as the RSI on the daily time frame is overbought, suggesting a potential correction before the bull trend resumes.

Investors and traders are recommended to consider trailing stop loss or hedging strategies to manage risks in this dynamic market.

Looking at a larger time frame, Nifty is perceived as very bullish. Investors are encouraged to remain invested, not being swayed by the index value.

India continues to attract significant foreign and domestic investments, making it a hotspot for financial inflows.

Despite the ongoing rally, the market presents a golden opportunity, particularly in sectors showing positive momentum.

Analysts expect the influx of Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) to persist. Investors are reminded to stay vigilant and capitalize on this favourable investment climate. 

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