From Benchmarks to Breakthroughs: Nifty smashes 26000 hitting record high

Market Synopsis:

The Indian stock markets continued its strong run this week, reaching new milestones. The Nifty 50 index surpassed the 26,000 mark for the first time, closing at a record high of 26,277. The BSE Sensex also scaled new heights, touching 85,978. This sustained uptrend has been bolstered by a lack of major corrections or pullbacks in the past two weeks, resulting in a net gain of 3.04%. 

Domestic institutional investors (DIIs) played a crucial role in supporting the market’s ascent, with their cash flows showing an incremental trend. However, midcap stocks witnessed a period of consolidation, indicating a potential pause in their rapid run-up. Overall, the broader market sentiment remains positive, underpinned by the consistent inflow of funds and a lack of major negative catalysts.

Market Watch:

Top Gainers

Sun Pharmaceuticals  2.66%
Reliance Industries  1.72%
Titan Company  1.5%

Top Losers

Power Grid Corporation  -3.03%
ICICI Bank  -1.83%
Bharti Airtel    -1.74%

Major Market Developments:

● Mcap of 8 of top-10 most valued firms surges Rs 1.21 lakh cr, Reliance emerged as biggest winner.
● Sebi gives nod to Swiggy, files for Rs 10000 Crore IPO, eyes diwali listing.
● Reliance Industries and Disney announce a strategic Joint Venture to bring together the most compelling and engaging entertainment brands in India.
● Zee Media Corporation shares jump 10% hitting 52-week high as company’s board approves Rs.200 crore crore fundraising through issue of fully convertible warrants.
● ITC has increased its stake in Sproutlife Foods, as it’s plan to fully acquire the company in stages. As a result, shares hit record high, market-cap moves past Rs.6.5 lakh crore for the first time.
● China’s economic stimulus announcement has bolstered investor confidence, resulting in notable positive momentum in global markets, particularly within Asian indices.

DII activity (net cash)

● 23rd September : 1022.64 Crore
● 24th September : 3868.31 Crore
● 25th September : 1778.99 Crore
● 26th September : 2405.12 Crore
● 27th September : 6886.65 Crore

FII (Foreign Institutional Investors) – 

● 23rd September : 404.42 Crore
● 24th September : -2784.14 Crore
● 25th September : -973.94 Crore
● 26th September : 629.96 Crore
● 27th September : -1209.10 Crore

Technical Analysis:

The Nifty 50 index saw a 1.44% increase, maintaining its bullish momentum following a breakout from the prior week’s consolidation phase. The index closed at 26,178, after reaching a high of 26,277, signaling robust market sentiment with no major corrections throughout the week. This rally has been supported by strong technical indicators and
key market levels.

The support zone at 25,500 held firm, confirming strong buying interest, while the resistance level at 26,500 is expected to be the next challenge for the market in the upcoming sessions. The RSI shows no divergence, reinforcing the continued bullishness as the market remains in a healthy uptrend without showing signs of being overbought. Additionally, if the Nifty 50 closes above 25,450 in the coming week, it would confirm that the positive trend remains intact, limiting the chances of a significant downturn.

In summary, the Nifty 50 is expected to maintain its bullish stance into next week, with 25,450 acting as a crucial level for trend continuation. The market’s resilience, coupled with strong technical signals, suggests limited downside risks