Indian stock markets concluded the day strongly as index heavyweight stocks increased, and investors felt relieved by Jerome Powell's remarks regarding potential rate hikes. As a result of strong global cues and a declining dollar, benchmark indices closed close to their day's high. Defense business DCX Systems' equity shares, which were listed for Rs 287, a 39% premium to their issue price, had a great market debut today.
The BSE Sensex had increased by 1,181 points (up 2%) at the closing bell. The NSE Nifty, meanwhile, finished the day 322 points (up 1.8%) higher. Among the leading gainers today were HDFC (NS:HDFC) Twins, Infosys (NS:INFY), and Tech Mahindra (NS:TEML). On the other hand, M&M (NS:MAHM), SBI (NS:SBI), and Kotak Bank were among today's biggest losers. At the time of writing, the SGX Nifty was trading at 18,436, up 339 points.
Despite modest gains, the overall markets concluded on a positive note. The BSE MidCap index increased by 0.2%, and the BSE SmallCap index finished up by 0.3%. Today's sectoral indexes closed out well, with the majority of the buying occurring in the metal, IT, and financial sectors for stocks. Today, the shares of Godfrey Philips and Bharat Forge (NS:BFRG) reached their 52-week highs.
Why the Nifty could rise 4% higher from its 52-week high levels
If we look at Nifty data and Monthly Chart, we can clearly see that there is strong buying happening in heavy-weight stocks like HDFC twins, reliance, LT, SBI, ITC, HLL, and banking stocks. Now it's time for OIL and gas stocks like HPCL, BPCL, and ONGC (NS:ONGC). The Nifty reached a low of 15200 levels in June 2022 before making a good recovery due to a robust economy, and assistance from DII at lower levels, and now the market is reaching new highs thanks to FII. Last year, the Nifty was at the same levels at 18300 levels.
The 18080 level serves as strong support for the Nifty, which reached it's 52-week high yesterday during trade and held there. The likelihood of a 4% upward movement from current levels is very high if we look at historical history. The same chart patterns were seen from 12000 to 14000, then again on July 21 from 15600 to 18600. At the moment's level, I think the same can be repeated.
I've included the NIFTY monthly data from last year and the monthly chart. Based on what I observed and my opinion, the NIFTY will increase by 4% from its current levels in the November series.
