Nifty closes at record high as market rises for second session; what's next?

Sensex, Nifty today: Nifty hit a record high on Friday powered by a rally in auto, banking and capital goods stocks. The 50-stock index rose to a fresh high of 26,340, rising 194 pts intra day. Later, Nifty closed 182 pts higher at a record level of 26,328. Sensex too gained 573 points to close at 85,762. The market closed higher for the second straight session today.

The BSE auto index zoomed 659 points to close at 63,808 and BSE capital goods index rose 613 pts to 67,872. All 19 sectoral indices except FMCG index closed higher on BSE. The FMCG index tanked 221 pts to 19,520.

NTPC emerged as top gainer on the Sensex, rising 4.67% to Rs 352 followed by Trent (2.58%), Bajaj Finance (1.84%), PowerGrid (1.57%) SBI (1.49%) and Maruti Suzuki (1.47%). ITC (3.79%), Kotak Bank (1.04%), Axis Bank (0.36%), Bharti Airtel (0.09%) and UltraTech Cement (0.01%) were the only Sensex losers.

Bank Nifty too hit its record high of 60,203 during the session. The index closed 439 points higher at 60,151.

Overall, of the 4,371 actively traded BSE stocks, 2772 closed higher, 1449 declined, and 150 remained unchanged. At the end of session, 185 stocks touched their 52-week highs, while 83 fell to 52-week lows. Meanwhile, 5 stock hit their upper circuits, and 6 fell to their lower circuits.

On the outlook of Nifty, Amol Athawale, VP Technical Research, Kotak Securities said, "For trend-following traders, 26,250/85500 and 26,100/85000 would act as key support zones. As long as the market is trading above these levels, the bullish momentum is likely to continue. On the higher side, the market could continue rallying till 26,500/86200. Further upside may also push the index up to 26,700/86700. However, below 26,100/85000, the uptrend would become vulnerable."

Nandish Shah - Deputy Vice President, HDFC Securities said, "Nifty has now convincingly surpassed the previous swing-high barriers at 26,236 and 26,325, signaling a strong breakout from its earlier consolidation zone. With the index entering uncharted territory, the near-term upside opens toward 26,500 and beyond. On the downside, immediate support has shifted higher to around 26,100, which is likely to act as a near-term cushion on any dips."

Ajit Mishra – SVP, Research, Religare Broking said, "The prevailing trend remains positive, with the index now poised to gradually test the 26,500–26,700 zone in the near term. With broad sectoral participation excluding FMCG, participants are advised to focus on stock selection based on relative sector strength and favourable risk–reward opportunities."

Meanwhile, the Indian rupee extended its slide for the third consecutive session, falling 24 paise to settle at 90.24 against the US dollar, at a two-week low. The currency’s decline was largely driven by sustained dollar strength and persistent foreign outflows from domestic equities.

Previous session 

Sensex rose 545.52 points breaking its five-session losing streak to close at 85,220.60. Nifty broke its four-day decline, advancing 190.75 points, or 0.74 per cent, to end at 26,129.60.