Investors' sentiment buoyant

A new all-time high at 18,197.80 and a record close keep investors' sentiment buoyant. The market continues to remain bullish with the broader sectors contributing to days gain. The momentum which was largely contributed by auto and PSEBanks and PSE space in the last few sessions is now also adding metals and energy to the list.

The breather in the IT space after TCS results and some recovery led to a completely bullish bias. Prices continue to rise with factors such as crude, inflation or underperforming global indices not giving any pressure to bullish sentiments in domestic markets. Fresh call additions are seen in 18,300 and 18,500 strikes while on the downside we expect support to come in at 17,800 – 17,950 levels. Nifty has some major resistance based on Fibonacci at 18,250 – 18,300 hence we would suggest treading lightly and keep shifting or trailing the stops. Markets are now looking at few important factors which will be playing out.

As we write Infosys will be announcing its results and GDRs in the US are pointing to very bullish sentiment, it will be followed by MindTree and HCLTech. We are also looking forward to HDFC Bank's earnings which will come later in a truncated week. It was the day for Tata Stocks as investments into Tata Motors' EV subsidiary was one of the factors.

Technically, short term to mid and long term averages are positive on a rolling basis depicting the strong trend underneath while the ADX which was flat has also turned positive showing the strength in Trend. The RSI is well above 70 showing the momentum is sustained. Although the investors are suggested to be logical and objective in terms of risk management and not get swayed away in the rally.

(The author is Technical Analyst, Finversify)