Stock market today: Benchmark indices Nifty and Sensex gained momentum in mid-day trade on August 21, driven by strong performances in pharma, oil & gas, and banking stocks, while renewed buying in IT shares further boosted sentiment after a slow start.
Around 12:05 pm, the Sensex rose 245.44 points, or 0.30%, to 82,103.28, and the Nifty climbed 62.35 points, or 0.25%, to 25,112.90. Meanwhile, 2,172 stocks advanced, 1,347 declined, and 123 remained unchanged.
On Wednesday, the Nifty opened on a flat note and experienced early selling pressure, but buying at lower levels enabled it to regain the 25,000 mark, reaching an intraday high of 25,088.70 before settling at 25,050.
” Equity benchmarks continued their winning streak for a fifth consecutive session, closing with minor gains. The indices opened marginally higher and sustained a range-bound trajectory throughout the day, reflecting a “buy on dips” sentiment driven by sectoral rotation. The Nifty IT index was the top performer, rallying significantly on the back of cautious global sentiment ahead of the U.S. Federal Reserve’s Jackson Hole symposium, as IT stocks are perceived as a defensive play given their exposure to the U.S. market,” said brokerage firm Axis Securities in its Daily Derivatives Insights report.
Will the rally continue or is it time to book profits?
According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, Nifty continued to move higher amidst range bound action on Wednesday and closed the day higher by 67 points.
“After showing a sustainable upmove with range bound action on Tuesday, Nifty continued to move higher amidst range bound action on Wednesday and closed the day higher by 67 points. After opening with a negative note, the market started to show recovery from the lows in the early part of the session. A gradual upmove continued in the mid part and the market consolidated towards the end.
A reasonable positive candle was formed on the daily chart that signals uptrend continuation in the market. Nifty is now placed at the hurdle of down sloping trend line at 25080 levels and the overall chart bullish pattern indicates chances of decisive breakout of the hurdle soon.
The short-term trend of Nifty continues to be positive. Further upside from here could pull Nifty towards the next overhead resistance of 25300 in the short term. Immediate support is placed at 24900,” Shetti said.
On the other hand, Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking Private Limited, recommended investors to adopt ‘buy on dips’ strategy with cautious approach.
” Given the backdrop of heightened volatility and mixed global signals, traders are advised to adopt a cautious “buy-on-dips” approach. Booking partial profits during rallies and maintaining tight trailing stop-losses is recommended to manage risk effectively.
Fresh long positions should be considered only if the Nifty sustains above the 25,250 level. While the broader market trend remains cautiously bullish, close monitoring of key technical levels and global developments will be crucial,” Shinde said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
