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Monday, October 18, 2021

Nifty above 18300, Sensex crosses 61,000, know what is the reason for this rise

In today’s trading, for the fourth consecutive day, the reins of the market remained in the hands of the bulls. Despite the volatility in foreign funds, the market looks well prepared to celebrate Dussehra. For the last few trading sessions, the Sensex Nifty has been making high on high and buying is happening in almost all the sectors. Sensex has crossed the level of 61 thousand with strength. At the same time today Nifty has crossed the level of 18,300 in intra.

VK Vijay Kumar of Geojit Financial says that there is no threat to the market in the short term and the market remains strong. There is a possibility that the increasing participation of retail investors will keep the momentum going in the market. However, old and veteran investors seem to be somewhat surprised about the expensive valuation of the market.

Reasons for the rise in the market

Strong buying in IT stock has given wings to the market. Explain that after banking and financial, IT has the highest weightage in the benchmark index. The impressive results of Mindtree, Infosys and Wipro yesterday have fueled the IT sector’s boom. In today’s business, the IT index has seen a rise of about 3 percent. Mindtree has gained 12 per cent, Wipro 9 per cent and Infosys 1.5 per cent. Apart from this, 4-9 percent growth has been seen in other IT companies.

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HDFC Bank up

Before the September quarter results, HDFC Bank saw a strong rally today. With a gain of 1.5 percent, it touched a record high of Rs 1664 today. This rise of HDFC Bank has given big support to Nifty.

FOMC minutes

The fear in the market seems to have subsided with the US FDA chairman’s commentary. He said on Wednesday that US bond purchases would be cut gradually. However, he expressed his concern about inflation.

Increasing share of retail investors in the market

The share of retail investors in the market seems to be increasing steadily. In the month of September, investments of more than Rs 10,000 crore were seen in the market through SIP. This has happened for the first time in the history of Indian market. Foreign investors have been net sellers so far in October. They have now sold Rs 4,200 crore. Whereas, domestic funds have made purchases of Rs 1,300 during the same period. The money of domestic and retail investors coming into the market is acting as fuel.

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technical view

Strong buying is also being seen in small and medium stocks. They are performing much better than the giants. In today’s business, Nifty Mid Cap Index has gained 0.9 percent and Small Cap Index has gained 0.8 percent. So far this year, 55 per cent growth has been seen in midcaps and 63 per cent in small caps. Whereas Nifty has risen only 30 per cent.

Technically Nifty has crossed the level of 18,300 today. But it has formed a doji shaped pattern on the daily chart which is creating confusion regarding the direction of the market. Mohit Nigam of Hem Securities says that the bull run will continue in the market till the level of 18,400-500. Support is seen for Nifty at 18,000. At the same time, the resistance is seen at 18,400.

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Shehnaz is a Corporate Communications Expert by profession and writer by Passion. She has experience of many years in the same. Her educational background in Mass communication has given her a broad base from which to approach many topics. She enjoys writing about Public relations, Corporate communications, travel, entrepreneurship, insurance, and finance among others.
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