The Indian stock market reached new heights on Thursday, with both Nifty and Sensex hitting record highs. The US Federal Reserve’s decision to maintain the interest rates unchanged for the eighth consecutive time provided support to the markets. The Nifty closed at 25,004.00, up by 0.21 per cent, while Sensex closed at 81,867.73, a rise of 0.15 per cent. The Nifty’s crossing of the 25,000 mark marked a significant achievement, completing a 1,000-point rally in just 24 trading sessions, the third-fastest in its history. The market saw strong gains over the past three months, driven by robust GDP growth, controlled inflation, strong domestic liquidity, and favourable monsoon conditions.
During the day’s trade, top gainers included Power Grid Corp, Coal India, ONGC, Dr Reddy’s Lab, and Shriram Finance. Conversely, Mahindra & Mahindra, Tata Steel, Hero Moto Corp, State Bank of India, and Bajaj Finserv were the main laggards. The market was also impacted by US Federal Reserve Chair Jerome Powell’s hint at a potential rate cut in September. Additionally, India’s manufacturing sector showed impressive resilience in July 2024, with the HSBC India Manufacturing PMI report recording a strong reading of 58.1. Geopolitical tensions and a 4 per cent increase in WTI crude oil prices, influenced by Middle East conflicts, also played a role in shaping market dynamics.
In the broader market, the BSE MidCap index fell by 0.7 per cent, and the SmallCap index declined by 0.5 per cent. The Nifty Media and Realty indices were the worst performers, decreasing by 0.88 per cent and 1.37 per cent, respectively, while the Nifty Bank index rose by 0.3 per cent. Currently, the market is trading in an overbought condition, evident from its RSI readings which are above 75 on daily, weekly, and monthly timeframes. There is also a price deviation on the daily and weekly timeframes as per the 20-day and 50-day EMA. Traders are advised to maintain a neutral view in the current market conditions.
Based on the current market momentum, experts predict that Nifty could find support between the levels of 24,940 and 24,860 and face resistance around 25,085 and 25,130 in the upcoming session. The market’s performance is influenced by a combination of domestic and international factors, and investors need to stay informed about the latest developments to make well-informed decisions. As the Indian stock market continues to break records and show resilience, it presents opportunities for investors to capitalize on the positive momentum and potential growth prospects in the coming days.
