IANS | 04 Dec, 2023
The benchmark indices reached new record highs on Monday, with Nifty
surpassing 20,650 and Bank Nifty achieving a record high, gaining
1617.20 points, said Mandar Bhojane, Research Analyst at Choice Broking.
The
Nifty closed the day with a substantial gain of 418.9 points or 2.07
per cent, settling at 20,686.80. At close, the Sensex experienced a
significant surge, rising by 1,383.93 points or 2.05 per cent to reach
68,865.12.
This positive market momentum reflected an overall sense of optimism and confidence in the financial markets.
Bulls demonstrated strong dominance in Monday's trade, propelling the index higher right from the beginning.
Except
for media and pharma sectors, all others concluded the day with gains,
with banking and energy stocks emerging as the top performers.
However, mid and smallcap indices underperformed as buying was concentrated to index-based stocks, Bhojane said.
On
the daily chart, the Nifty sustained its upward momentum after a gap-up
opening of 300 points, forming a robust bullish candle indicative of a
strong uptrend.
However, a closer examination of lower time
frames, particularly the hourly charts, revealed an overbought
condition. A correction, either in terms of time or price, seems
warranted, suggesting that one should consider entering positions on
dips for a more favorable risk-reward profile, Bhojane added.
