Sensex, Nifty Scale Record High: Here're Tips For Trading In A Bull Market

As benchmark indices scale record highs, let's explore sectoral performance and tips for a bull market.
Sensex, Nifty Scale Record High
Sensex, Nifty Scale Record High

Indian benchmark indices scaled a record high today on June 27, 2024, crossing 24,000 and 79,000 respectively. At the closing bell, the Sensex was up 0.72 per cent at 79,243, and the Nifty was up 0.74 per cent at 24,044.

The Nifty index has reached new all-time highs for the past three consecutive trading sessions and registered a substantial 7.12 per cent increase this month. Remarkably, the Nifty 50 has accomplished its second-fastest 1,000-point rally, defying pullbacks of global economic sluggishness.

Among the top gainers on the Nifty 50 were Ultratech Cements, Grasim Industries, NTPC, LTIMindtree, and Wipro, while Shriram Finance, L&T, Divi's Lab, Bajaj Auto, and Eicher Motors were the top laggards.

Sectoral Performance & Tips For Investors

Today the IT Index which rose 2 per cent was the major contributor which helped Nifty to close above 24000. Apart from IT, the Energy sector was the other major gainer. Media, Pharma, Realty and PSU Banks were the laggards. Bank Nifty closed in the red down 0.11 per cent after rallying around 1,500 points in the last five days.

Hrishikesh Yedve, AVP of Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd shed light on Bank Nifty's performance. "Bank Nifty opened with a gap-up and registered a new record high of 53,180.75. Thereafter, the index witnessed profit booking and settled the day on a negative note at 52,811.30." From a technical standpoint, he said the movement of the bank index indicates that the stock price might drop further, due to a bearish outlook. "If the index sustains above the 53,200 level, the rally could extend towards 54,000," Yedve said.

Ajit Mishra - SVP, Research, Religare Broking Ltd said, "Several factors have contributed to indices scaling record highs, including buoyancy in heavyweight stocks, especially from the banking sector, combined with rotational contributions from heavyweights in other sectors. Additionally, the resumption of foreign institutional investor (FII) flows and stability on the global front are also aiding this positivity." Mishra said, "After the banking sector, we believe that recovery in the IT and FMCG sectors will help maintain the momentum. Participants should align their trades accordingly and remain selective in their broader market investments."

Om Mehra, Technical Analyst, SAMCO Securities said, "The Sensex settling at 79,210.96, marks a significant milestone in its bullish trajectory. After notable volatility in early June, the market experienced a strong recovery, rallying from a low of 70,234.43 to a peak of 79,329.54. This month, the Sensex has gained an impressive 7.12 per cent." Mehra suggested that there is a steady advance of buying pressure following a downtrend. Analysing the charts he feels buyers have gained confidence and are steadily driving the prices up, making it a strong signal of a potential trend reversal.

"However, after such a strong traction the Sensex may undergo a slight pullback or consolidation, which is healthy for long-term sustainability. Any pullback towards 78,000 to 77,500 presents a buying opportunity towards the 80,000-80,800 zone. The Sensex continues to remain above its short-term moving average, and the daily RSI remains steady near the 70 level, indicating continued strength in Sensex," Mehra said.

"The Nifty IT index witnessed a strong rally and advanced 2.03 per cent to end at 36,124. Technically, the index has achieved a short-term consolidation breakout target of 24,000 levels and managed to close above it. If the index holds above 24,000 levels, then rally could extend towards 24,250-24,500 in the short term," Mehra predicted.

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