Nifty 50 Hits ATH & Reliance is ‘Just Getting Started’!

  • Stock Market Analysis
  • Editors Pick

After the Nifty Bank and Sensex , finally, the Nifty 50 index surged 0.27% to an all-time high of 18,614.25 in today’s session and its free-float market cap shot up to INR 79,38,000 crores. It’s not surprising that the highest heavyweight in the index, Reliance Industries has had a major contribution in taking the Nifty 50 to an ATH level today. 

Reliance has a weightage of around 10.95% in the index and it delivered a not-so-common rally of around 3.44% to INR 2707.55. This led to a contribution of around 0.38% to the index rally, while losses from other giants such as HDFC (NS: HDFC ) twins and Infosys (NS: INFY ) offset some of the gains. The contribution of Reliance was so large that the next best contribution came in from ICICI Bank (NS: ICBK ) which was only 0.06%. You could see how important the rally of Reliance was for the Nifty 50 to scale to a new high.

However, it is interesting to note that the share price of Reliance Industries (NS: RELI ) itself has delivered a breakout on the charts which is pointing to a continued rally from here. Looking at the daily chart of the share price of Reliance industries, there has been a breach of two resistance levels around the same time. 

Image Description: Daily chart of Reliance Industries with volume bars at the bottom

Image Source: Investing.com

Firstly, as the stock gained traction, it surged past the horizontal resistance of INR 2,680. The stock had tested this level a couple of times and couldn’t pass it in either of the attempts. This increases the importance of this key level. Today, the stock sliced through this level like a hot knife slices through butter. There was absolutely no problem faced by the stock in today’s session and it also managed to close above it. 

Secondly, the trendline resistance was also breached in today’s rally. As can be seen from the chart above, this resistance was tested 3 times and today, the fourth attempt proved successful and it managed to close above this trendline resistance as well. The volume backing today’s move was very high, at 14.46 million shares. This is the highest one-day volume since July 2022. 

As the daily trend of the stock looks quite bullish, it might easily scale to new highs in the coming weeks. If Reliance keeps on moving higher, the Nifty 50 index would also be getting good support and therefore, forming a bearish view on the index should only be done by high-risk traders. One thing to note is that Reliance is a INR 17,19,969 crores big behemoth and therefore a midcap-like rally should not be expected. It might take its own sweet time to make a new high.

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  • namami ghosh @namami ghosh
    as usual... need I say more?
    Like 3
    • Aayush Khanna/Investing.com @Aayush Khanna/Investing.com
      Yes pls. I love praises 🙃
      Like 0
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  • Nusrat Jahan @Nusrat Jahan
    Market is all time high. but there is very less involvement of major nifty stocks. why
    Like 2
    • Aayush Khanna/Investing.com @Aayush Khanna/Investing.com
      Don't focus on the 'why'. Just go with the flow :)
      Like 0
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  • Ganesh Chavan @Ganesh Chavan
    Thanks you.
    Like 1
    • Aayush Khanna/Investing.com @Aayush Khanna/Investing.com
      You're welcome Ganesh :)
      Like 1
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  • Sunil Jadhav @Sunil Jadhav
    thank you
    Like 0
    • Aayush Khanna/Investing.com @Aayush Khanna/Investing.com
      You're welcome Sunil :)
      Like 0
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