Nifty50 Hits Psychological 20,000 Mark, Bank Nifty Nears 46,000

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The Nifty50 index hit a new closing high of 19,996.30 on September 11, 2023, after crossing the psychological 20,000 mark in intraday trade. The index was supported by all sectors, with financials and metals leading the gains.

The Bank Nifty index also continued its uptrend, closing at 45,571, after breaking above the 45,500 resistance level.

Technical analysts said that the Nifty50 is now in a strong uptrend and is likely to continue to rise in the near term. They see the next target for the index at 20,450 levels.

The broader markets also performed well, with the Nifty Midcap and Smallcap 100 indices rising more than 1 percent each.

The India VIX, the fear index, jumped by 5.26 percent to 11.35 levels, indicating that investors are becoming more cautious.

Here are some of the factors that supported the market:

  • The G20 Summit, which concluded on September 10, 2023, boosted investor sentiment. The summit was seen as a success, as it resulted in a consensus on a number of important issues, such as the global economic recovery and climate change.
  • The positive economic data released in recent weeks, such as the strong GDP growth in the first quarter of the current financial year. The GDP growth data showed that the Indian economy is recovering strongly from the pandemic.
  • The continued buying by foreign investors. Foreign investors have been net buyers of Indian equities in recent months, and they are expected to continue to support the market in the near term.

Here are some of the factors that could weigh on the market:

  • The rising inflation and interest rates. Inflation has been rising in India in recent months, and this could put pressure on the market. Interest rates are also expected to rise in the near term, which could also weigh on the market.
  • The ongoing war in Ukraine. The war in Ukraine is a major risk factor for the global economy, and it could also weigh on the Indian market.

Overall, the market is expected to remain positive in the near term, but investors should remain cautious of the risks.

In addition to the factors mentioned above, the following factors could also affect the market in the near term:

  • The outcome of the upcoming monetary policy meeting of the Reserve Bank of India (RBI). The RBI is expected to raise interest rates in the meeting, which could weigh on the market.
  • The release of key economic data, such as the IIP and CPI inflation numbers. Strong economic data could boost the market, while weak data could weigh on it.
  • Global cues, such as the performance of the US markets and the direction of crude oil prices. Strong global markets could boost the Indian market, while weak global markets could weigh on it.

Investors should monitor these factors and adjust their investment strategies accordingly.


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