Nifty marches towards new highs on frenzied investor buying

Frantic buying in Indian markets by domestic institutional investors (DIIs) and foreign portfolio investors (FPIs) got the benchmark stock indices elegant And Sensex near their high levels.

On Friday, Sensex rose 629 points, or 1.02 percent, to close at 62,501 points. The Nifty Index rose by 178 points, or 0.97 percent, to close at 18,499. FPIs stood to be net buyers of Rs.350 crore in the cash portion while domestic institutions were net buyers worth Rs.18.40 crore.

FPIs are on a buying spree

In May to date, primary financial institutions have been net purchases of Rs. 20,606 crore of stocks in the cash sector.

“We expect this momentum to continue and for Nifty to touch former-life highs in the coming weeks. The index is now only 380 points or 2 per cent away from its lifetime high. As results season draws to a close, focus will now shift to macro data and negotiation. US debt and upcoming central bank policy meetings,” said Siddhartha Kimka, Head of Retail Research, Motilal Oswal Financial Services.

Global markets were mixed on Friday, amid optimism that Congress and the US president will strike a deal to open a vote on lifting US government debt ceiling Avoiding a potentially catastrophic default despite growing concerns about a global economic slowdown constrained investors.

weather forecast

The Indian Meteorological Department has it It kept its forecast for a normal monsoon Even with “less than normal” rain expected in June. The southwest monsoon monsoon rainfall over the country as a whole is likely to be 96 percent of the long-period average with a typical error of +/- 4 percent, IMD officials said in their second forecast of the year on Friday. The average June 2023 precipitation across the country as a whole is likely to be less than 92 percent LPA, according to IMD.

Amol Atwal, Technical Analyst (VP), Kotak Securities believes that the market outlook in the short term has been strong, with key Nifty levels at 18,350 and Sensex at 62,000 acting as trend deciders.

If the index moves above these levels, it could rise towards 18600/62800 and possibly continue further to 18680/63000. Conversely, if the index falls below 18,350/62,000, traders may prefer to exit their long positions. For Bank Nifty traders, the 20-day SMA and 4,3600 are important support levels. If the index stays above this area, it could rise towards 44,500-44,700. However, a drop below 43,600 could accelerate selling pressure, triggering a possible retest of levels around 43,400 to 43,000,” Atwal said.