Exuberant markets touch new high after dovish commentary from US Fed

Mumbai: The markets continued their exuberance and hit fresh highs on Thursday amid the dovish commentary from the US Federal Reserve, signalling at least three rate cuts in 2024, said Vinod Nair, Head of Research at Geojit Financial Services.

While the Sensex closed at 70,514.20, up 929.60 points, the Nifty ended at 21,182.70, up 256.35 points.

Further, the sharp fall in US bond yields improved investors’ confidence. An upgrade in India’s GDP forecast, ease in global oil prices, and RBI's decision to clamp down inflation to the target level led to a broad-based rally with outperformance by realty and IT stocks.

Rupak De, Senior Technical Analyst at LKP Securities, said that Nifty has broken out of consolidation, driven by an increase in long positions compared to short trades among the participants.

Sentiment remains robust as the index maintains a position comfortably above the crucial moving averages.

Support is situated at 21,000, where Put writers have significant position. Looking ahead, there's a potential for the index to advance towards 21,400 and beyond on the higher side, De said.