The market continued its positive momentum on Monday with the Sensex crossing the 39000-mark intra-day as huge buying emerged in frontline stocks like Tata Motors, Hindalco and Wipro.
The Sensex closed up 198 points higher at 38,871, after touching a record 39,115.57 in morning trade. The Nifty 50 Index gained 45 points to close at 11,669.
Buying was seen in IT, metal, auto, industrials and telecom.
Tata Motors gained 7.5 per cent, while Hindalco, Wipro rose 5 per cent and 2.7 per cent respectively.
Six of 11 sector indices ended lower on the Nifty including realty, private bank, PSU bank, financial services, and media, while metal was top gainer, up 1.8 per cent and IT and PSU bank Indices also rose over 1 per cent. The Mid-Cap and Small-Cap shares also saw buying interest.
According to analysts, the market may see profit booking from higher levels in the next sessions.
Technical View
"There is no confirmation of any reversal pattern yet at the highs, but the overall candle pattern with negative divergence in the momentum oscillator, one may expect profit booking from higher levels in the next 1-2 sessions," Nagaraj Shetti - Technical Research Analyst, HDFC Securities said.
Analysts said the Nifty closed in the positive territory in the last trading session, it did witnessed some selling pressure from the higher levels, however, on the lower levels it has got good support near 11555 and 11400 levels.
"The immediate target comes to 11790/11800 whereas the medium term target comes to 11950 levels," Jay Thakkar Head Technical and Derivatives Research Anand Rathi Shares and Stock Brokers said.
According to experts, Pre-election rally extended to the new financial year with increase in prospects of political stability, rate cut expectation from RBI and improvement in GST collection in March. A better than expected Chinese economic data and surge in US 10yr yield eased the global growth concern which further added impetus to the sentiment. In spite of this, the market gave up some gains towards closing due to strong resistance at 11,700 levels.
Now, as far as levels are concerned, Monday's low would be seen as a key support for the coming session. A sustainable move below this would extend this profit booking towards 11600 - 11580 levels.
"On the flipside, we still believe that the Index is going to see fresh record highs soon. On Moday, Banking Index clearly underperformed, but it's evident at such elevated levels. Also, the Mid-Cap Index which has been buzzing since few days has faced resistance around key Fibonacci ratio. So some consolidation may be on cards; but it would probably be very short lived. Meanwhile, one should keep focusing on individual stocks that are showing strength and are likely to provide better trading opportunities," Sameet Chavan Chief Analyst-Technical and Derivatives, Angel Broking said.
