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SGX Nifty Connect at 19358 indicates positive momentum to continue at BSE and the NSE on Monday as Nifty futures on Monday closed at 17261.25 on the NSE.
Analysts expect the momentum to continue at the bourses as they see uninterrupted inflow from foreign portfolio investors.
Markets finally made a decisive move and reclaimed their record high after seven months., said Ajit Mishra, SVP - Technical Research, Religare Broking Ltd. The tone was positive from the beginning, further strengthening as the week progressed. Consequently, both benchmark indices, Nifty and Sensex, crossed the new milestone- 19,000 and 64,000, respectively and settled around the week’s high as well.
“Apart from favourable domestic cues, stability in the US markets has been playing an important role in maintaining buoyancy. A decisive close above 34,600 in Dow Jones Industrial Average (DJIA) would add more legs to recovery and that could help our markets to witness steady a uptrend,” he said.
Outperformance to continue
Following a strong close in the US market, Asian stocks are also trading higher in early deals on Monday.
Chola Securities said, “We maintain continuity of India’s relative outperformance over to medium to long term.” Encouraging Monsoon onset and strong global cues augur well. Though at all-time highs, India is undoubtedlythe best growth story world has at moment. India a buy on corrections while staying put on longs, it added.
According to ICICI Securities, Going ahead, “we believe the ongoing positive bias should continue with elevated Nifty support now placed near 19000 levels for a target of 19400-19500 levels.”
Bank Nifty
The Bank Nifty has finally managed to move beyond its 6 weeks of consolidation near 44000 levels and registered fresh life highs last week. The announcement of merger date of the HDFC twins triggered buying in HDFC Bank, resulting in almost 3.5% gains in the stock. As a result, Bank Nifty also surpassed 44500 levels despite a below-par performance from the rest of the stocks.
Going ahead, banking index may move towards 45000 to 45500 levels with elevated support now placed near 44200 levels.
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