Nifty Continued its Upward Journey for The Sixth Day On The Trot As Technology Stocks Gain

Nifty rose for the 6th session on the trot and ended the day with a minor gain of 37 points or 0.15% at 25141. An attempt to decisively break out from the 25,200 resistance level failed, as the Nifty saw a more than hundred point fall from its day’s high of 25,222 after 1 P.M. Trading volumes on the NSE cash market were up by 7% compared to yesterday.

HCL Tech, Infy and Tech Mahindra were amongst the major gainers on the Nifty. Conversely, Shriram finance, Powergrid, and BEL faced selling pressure and ended as major losers.

The Indian Rupee today posted strongest gains among its Asian counterparts, appreciating by 9 paise against the greenback to settle at 85.51 levels. This positive movement was primarily buoyed by a weaker U.S. dollar and a resurgence of strong foreign institutional investor (FII) inflows into Indian equities.

In a change from recent trends, both the Nifty Midcap and Smallcap indices broke their winning streak today. The Nifty Midcap 100 Index fell by 0.49%, while the Nifty Smallcap 100 Index went down by 0.53%. However, market breadth remained decisively positive for the sixth consecutive session, with advancing stocks significantly outpacing declining ones, as indicated by a BSE advance-decline ratio of 1.24.

Sectorally, Oil & Gas, IT, and Pharma were the major gainers, demonstrating strength even in a consolidating market. However, Nifty PSU Banks, FMCG, and Metal sectors ended the day in the red.

Technically, the Nifty ended the session forming a “Doji” candlestick pattern on the daily chart, which signals indecision in the trend. To negate the negative implications of this pattern and signal further upside, the Nifty must surpass the resistance of 25,200 on a closing basis. On the downside, the 25,000-25,050 band could offer immediate support for the Nifty.