Nifty shows encouraging up-move signals

The market ended higher on Tuesday driven by gains in market heavyweights like Reliance Industries (RIL), Infosys and HDFC Bank.

The Sensex ended 185 points higher at 40469, while the Nifty settled 0.5 per cent higher at 11940.

Amongst the broader markets BSE Mid-Cap and BSE Small-Cap, ended on a positive note in range of 0.3-0.4 per cent.

Technical View

Sameet Chavan, Angel Broking, said, “Nifty may soon breach the 12,000 mark. The index has finally managed to surpass the first hurdle at 11,900 on a closing basis. The major charioteer for this move was clearly the banking pack, which has been showing some encouraging signs in the past couple of days. The way both Nifty and Nifty Bank have shaped up, the 12,000 level or beyond is not too far for the market. Hence, we remain sanguine and expect the immediate support base to shift higher towards the 11,867-11,802 range.

Market View

Vinod Nair, Head of Research, Geojit Financial Services Ltd, said, “Market turned positive due to buoyancy from telecom stocks supported by tariff hike plans. Positive vibes also witnessed in PSU banks having exposure to distressed assets. Gains in Pharma, energy and infra stocks pushed markets higher while losses in Auto, metals and consumer stocks limited the gain. Fear of downgrade in FY20 earnings due to slow pace in consumption demand and industrial growth may consolidate the market in the near term.”