In another day of market activity, the indices continued their upward momentum, marking a nearly 1% gain. The Nifty, after an initial surge, held within a certain range for the majority of the session, settling near the day’s peak at 20,855.10 levels. A mix of trends within various sectors kept traders engaged, with energy, metal, and banking sectors emerging as top performers. The broader market indices followed suit, closing with moderate gains.
The persistent rotation in buying among heavyweight stocks continues to drive the Nifty higher, even as it enters the overbought territory, inching closer towards the significant “21,000” mark. It’s advised to concentrate on stocks that have been less active but are possibly ready to join the ongoing surge. Traders are also recommended to adjust their stop-loss levels in existing trades to maximize gains in line with the prevailing market trend.
Shrey Jain, the Founder and CEO of SAS Online, highlighted the sixth consecutive session of gains, attributing it to the optimistic sentiment post the ruling party’s state election victories. Nifty concluded with a robust gain of 168.30 points or 0.81%, reaching 20,855.10. Banking stocks, especially public sector banks, saw substantial growth, propelling Bank Nifty to an impressive 1.25% surge or 580.85 points, closing at 47,012.25.
Despite the bullish trend, caution is advised as Nifty steps into the overbought territory, as indicated by the Relative Strength Index (RSI) surpassing 80. This situation might prompt some profit booking. Given these conditions, it’s advisable to make adjustments and trail stop losses to mitigate potential risks.