Nifty continues to climb the ladder formed by bullish white candles since past six trading sessions. Bulls drove broad based NSE index Nifty to much coveted levels of 5800 today. Index opened at 5776.35 and swiped 61.4 points to touch its day’s high at 5837.75 in less than an hour of its opening bell. However, it could not hold on to these levels for long as profit booking drove the levels back to the levels of 5776-5804.
Nifty closed the day with 35.55 points up at 5795.55 trading at its 24 month high. Among the major drivers, Kotak Bank lead the rally by climbing 4.90%, followed by Wipro up by 4.01%, Jaiprakash Associates (3.39%), Reliance Capital (3.12%) and Sterlite Industries (3.03%) being among the major Nifty gainers.
However, Market breadth was negative on the NSE with 2163 losers against 1077 gainers signifying profit booking at higher levels.
The VIX, which has a negative correlation with the index, reached 18.60 increasing 2.54%. It reached a high of 20 signifying volatility amongst the investors. There is a possibility that Nifty either consolidates or comes down for a mild correction to build a base for sustained up moves in the index.
Although, market corrected after reaching the day’s high, but robust industrial numbers suggestive of sustained growth of the Indian economy might sustain current Nifty’s movement in the positive territory.
The September month has become pretty dynamic in just a fortnight. The levels of 5450-5550 levels around which index was ranging in since long has been surpassed with absolutely no looking back till today. However, profit booking will prevail for some time, but it appears that this time Bulls will not let Bears overpower them easily…
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