 |
|
The Indian stock market, specifically the Nifty index, has witnessed a remarkable surge in recent days, gaining over 800 points in just seven trading sessions. This strong bullish momentum has propelled the Nifty from below 25,000 on September 11th to the cusp of 26,000 by the end of the week, just four days before the September F&O series concludes. This rally comes after a period of volatility and uncertainty, with the index struggling to hold onto the 25,000 level for a significant portion of the series.
The Nifty's impressive performance has been attributed to several factors. One notable driver is the outperformance of the Nifty Bank index, which has surged nearly 2,800 points in the last seven trading sessions, ending near the 54,000 mark on Friday. This strong performance is attributed to the two heavyweight banking players, HDFC Bank and ICICI Bank, with the latter hitting a record high last week. Experts believe that the Nifty Bank could potentially reach 55,000 on the upside, with strong bullish signals evident on the daily chart.
Besides the banking sector, the Nifty's recent gains have also been fueled by positive developments in the broader market. Foreign institutional investors (FIIs) were net buyers in the cash market on Friday, with a substantial influx of $1 billion towards the end of the trading session due to the FTSE All World Rebalancing. This influx has further supported the market's recovery. Several analysts and experts believe that the Nifty is well-positioned for further upside, with the index expected to reach levels of 26,000-26,200. They recommend using dips towards 25,660-25,520 as buying opportunities for the short-term.
The market structure remains bullish overall, with the Nifty now moving towards its next resistance zone of 25,920-26,000. As the September F&O series approaches its expiry, the focus is shifting back to domestic factors. The first week of October will see companies reporting their quarterly business updates, followed by the start of the September quarter earnings season with IT companies taking the lead. The handover from Wall Street is relatively subdued, with the benchmark indices experiencing a quiet session on Friday but still ending the week with gains, with the Dow Jones reaching a record high.
Source: Trade Setup for September 23: What next for the Nifty after a 800-point rally in seven sessions