Indian benchmark indices continued their record-run for the second straight session on August 31 amid mixed global cues. At close, the Sensex was up 1.16% at 57,552.39. On the other hand, Nifty touched an intra-day record of 17,153.50. The total market capitalization of BSE-listed companies crossed Rs 250 lakh crore for the first time. It rose by Rs 2.68 lakh crore to Rs 249.98 lakh crore from the previous session.

“Led by bulls, domestic indices breached record highs amid broad-based buying due to continuation of Fed’s dovish policy and the expected release of domestic GDP data. Many business activities have rebound to pre-Covid levels, the RBI had forecast June quarter GDP to grow at 21.6% on a YoY basis,” said Vinod Nair, Head of Research at Geojit Financial Services.

Bharti Airtel, Bajaj Finance, Eicher Motors, Hindalco Industries and Shree Cements were the top Nifty gainers. Tata Motors, Nestle, IndusInd Bank, Reliance Industries and BPCL were among the top losers.

The broader market underperformed the benchmarks, but BSE midcap and smallcap indices gained 0.8 percent each.

Among individual stocks, it rose more than 300 percent and was seen in Ipca Laboratories, AU Small Finance Bank as well as Apollo Hospitals.

There is a long buildup in Ipca Laboratories, Can Fin Homes and Syngene International, while a short buildup is in Au Small Finance Bank, Havells India and Hindustan Aeronautics.

More than 200 stocks, including TCS, JSW Energy, SRF, HUL and Bajaj Finserv, hit a 52-week high on the BSE.

Technical View

Nifty formed a bullish candle and continued its winning streak for the seventh consecutive session.

“It has to continue to hold above 17,000 zones to extend the move towards 17,250 and 17,500 zones, while on the downside support is seen at 16,950 and 16,750 levels,” said Chandan Taparia, Vice President | Analyst-Derivatives, Motilal Oswal Financial Services.

Outlook for September 1

Ashis Biswas, Head of Technical Research at CapitalVia Global Research:

The market witnessed the continuation of a positive trend, after sustaining above the level of 16900. The market has reached an important resistance level of 17000.

A study suggests that if the market sustains above the level of 17000, the market expects to gain momentum. This will lead to an upside projection till 17200-17250 level.

The momentum indicators like RSI and MACD are positive and market breadth has improved, further strengthening a short-term bullish outlook.

Ajit Mishra, VP – Research, Religare Broking:

It was a phenomenal move in Nifty as it rose from 16,000 to 17,000 in August, after spending nearly two months in consolidation. Going ahead, participants will first react to GDP data in early trade on Wednesday i.e. September 1. Besides, the auto sales will also start pouring in.

Do read our other analysis too.

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