Vertical Ascent: Bulls pitch camp at new heights
equity indices surged nearly 1% to new highs on Monday, with the Nifty closing above 22,000 for the first time, as IT stocks continued to propel the markets on better-than-expected third-quarter earnings. The Sensex ended above 73,000 for the first time, extending the recent bullish momentum, though the Volatility Index — a fear gauge — rose 5.2%, indicating some signs of discomfort among traders over the pace of the upmove.
The Sensex gained 1.05%, or 759.49 points, to a record close of 73,327.94 after touching an all-time high of 73,402.16. The Nifty rose 0.93%, or 202.90 points, to a record close of 22,097.45.
The index recorded a lifetime high of 22,115.55 intra-day. Both have gained nearly 3% in last one month.
«The momentum is likely to continue for next couple of weeks and in the short term, 22,300 is the next resistance level,» said Ruchit Jain, lead research analyst at brokerage 5paisa.
«However, 22,500 levels would be considered as an overbought zone.»
Nifty IT Index Jumps 1.9%
IT stocks continued their winning run, with the Nifty IT index surging 1.9% on Monday after soaring 5.4% in the previous trading sessions.
Wipro and HCL Tech led the upsides on Monday, jumping 6.4% and 3.1%, respectively, after markets continued to be impressed by the December quarter results of the software services exporters.
Friday's gains had been led by Infosys and TCS. Though most of the big IT companies have either seen an erosion in profitability in the quarter or cut their revenue guidance for FY24, investors have lauded them as resilient in a tough economic environment.
«Despite the current macro environment globally, the interest rate pause and potential cut is driving a relatively better future outlook for IT sector,»
