Nifty & Sensex Hits All Time High

Market Update - Thursday, 27 Nov

Asian markets were looking strong this morning, continuing the expectation that the US Federal Reserve will soon cut interest rates, which caused positive ripples across Asia. The Indian market followed suit, and both the Nifty and Sensex actually made a new all-time high today.

Although they couldn't hold those peak levels and the markets came back down, technically a new high was achieved.

Looking at the Nifty chart, the movement isn't bad at all. After a fantastic move yesterday, the index consolidated near the close today.

• Nifty closed up marginally at 0.04%. The profit-taking was more pronounced further down the market cap scale:

• Nifty Junior was slightly down by 0.17%, Mid-caps were absolutely flat at 0%, and Small-caps were down a bit more at 0.36%.

• The Bank Nifty was the standout performer, flying higher to create another new all-time high, up 0.35%.

• Gold has been moving up and is now at 12,647 per gram in Indian Rupees.

• Silver is also moving up, approaching its all-time high and a cup-and-handle formation, gaining 1.2% to stand near 61,851.

Other Market Triggers

• The main advances came from the banking and finance space: ICICI Bank, HDFC Bank, and Kotak Bank moved up, along with Bajaj Finserv, Bajaj Finance, and Shriram Finance.

• State Bank took a small step back. Autos, Reliance, ONGC Energy, and some IT stocks were down. Infra and some pharma stocks also moved up, while cement and steel sectors were looking down.

• The Nifty heat map showed good gains in LTIM, Hindustan Zinc, PFC, REC, Canara Bank, Motherson, ABB, Chola Finance, and LIC.

• Losses were seen in CG Power, IOC, BPCL, Pidilite, HAL, Godrej CP, Britannia, and United Spirits.

• In the Movers of the Day segment, Ashok Leyland saw a fantastic jump of 7.25%, driven by a proposal for the merger of its finance arm.

• GMDC also moved up 4.75% due to the cabinet's approval of a rare earth magnet program.

U.S. Market Update

• The US markets in their last session were very positive, with gains ranging from 0.6% to 1.8% across the S&P 500, Dow Jones, Nasdaq, and Russell.

• Leading the rally were stocks like Oracle, Advanced Micro Devices, Target, Broadcom, and Intel. Oracle, which had been beaten down badly recently, saw a slight bounce.

• The S&P 500 heat map showed Microsoft gaining a bit, Google losing a bit, Nvidia gaining 1.3%, and AVG doing well at 3.26%. Tesla was up, while Eli Lilly was down. Netflix was also up, and JP Morgan and Berkshire moved up slightly. Some of these stocks might be part of the Weekend Investing US stock strategy, but these are not recommendations and the disclaimer applies to that strategy.

What to watch next ?

• New ATH is generally an event that increases the probability of markets moving higher rather than lower.

• While the rest of the market hasn't fully participated heavily with the Nifty, the fact that the main index is hitting a new high certainly indicates the underlying positive current, especially for Nifty and large-cap stocks.

• We might continue upwards or consolidate here for a while before the next move up. As long as we don't break the low of yesterday's (Wednesday's) candle, the positive trend should hold.

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