On August 28, 2024, the Nifty 50 index achieved a significant milestone by hitting a new all-time high of 25,129.60 during intraday trading. Despite modest gains throughout the session, the Nifty 50 closed at 25,052.35, marking a 34.50-point or 0.14 percent increase. The BSE Sensex also ended on a positive note, rising by 73.80 points or 0.09 percent to settle at 81,785.56. The Sensex reached a high of 82,039 during intraday trading.
The Sensex also saw a modest increase, ending the day at 81,785.56, up by 0.09 percent. This marks the tenth consecutive session of gains for the Nifty 50, although the growth has been incremental.
Over this period, the Nifty 50 has recorded a cumulative increase of 3.8 percent, with an average daily gain of approximately 0.40 percent. However, the gains have been rather modest, with only one instance of a rise exceeding 1 percent and several days showing increases below 0.30 percent.
Market experts suggest that the Indian stock market is currently experiencing a phase of consolidation with low volatility. This consolidation is seen as a healthy adjustment given the current high valuations.
The market seems to have already factored in the anticipated 25 basis points rate cut by the Federal Reserve, and there are no immediate catalysts driving further significant gains. Additionally, geopolitical tensions, oil price fluctuations, and elevated market valuations are presenting ongoing challenges.
On Wednesday, the benchmark indices recorded slight gains amid mixed global signals. The US 10-year bond yields decreased further, and crude oil prices fell by over 1 percent. Despite these global factors, the domestic market showed a balanced performance.
In terms of sectoral performance, the Nifty IT and Pharma indices stood out with gains of 1.64 percent and 1.14 percent, respectively. This contrasts with the broader market, where sectors like Nifty Bank and PSU Banks saw declines. The Nifty Bank index fell by 0.26 percent, while the PSU Bank and Private Bank indices decreased by 0.45 percent and 0.14 percent, respectively.
The mid and small-cap segments faced some selling pressure. The Nifty Midcap 150 index fell by 0.14 percent, and the Nifty Smallcap 250 index declined by 0.22 percent. Among the Nifty 50 stocks, Maruti, Asian Paints, and Adani Enterprises were among the top losers, each experiencing declines of over 1 percent.
Conversely, LTIMindtree, Wipro, and Divi's Laboratories emerged as the top gainers in the Nifty 50 index, with gains ranging from 2.71 percent to 6.31 percent.
Vinod Nair, Head of Research at Geojit Financial Services, noted that while the consolidation of the US 10-year bond yield and foreign institutional investor inflows have kept the domestic market sentiment positive, high valuations could pose a challenge. The upcoming GDP data for Q1 FY25 will be a crucial factor in determining future market movements.
Technical analysts observed that the Nifty 50 formed a Doji candle pattern, which suggests indecisiveness in the market. Jatin Gedia, Technical Research
Analyst at Sharekhan by BNP Paribas, indicated that the index might continue its upward trend but could face resistance between 25,200 and 25,250. Support levels are expected around 24,920 to 24,850, where key moving averages are positioned.
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