Investor wealth climbed Rs 14 lakh crore as Sensex surged 2,200 points in seven sessions; what’s next?

Benchmark indices Sensex and Nifty have gained for seven straight sessions, leaving investors guessing how long could the rally last. Sensex gained 2,195 points in seven sessions, from 71,072 on February 12 to an intraday high of 73,267 in the current session. Similarly, Nifty rose 632 points from 21,616 on February 12 to 22,248 on Wednesday.

The ongoing rally has pushed Nifty to its record high of 22,248 and Sensex is less than 200 pts away from its record high of 73,427 reached in January 16 this year.

Investor wealth surged 14.46 lakh crore during the period. BSE market cap on February 12 stood at Rs 378.84 lakh crore which rose to Rs 393.30 lakh crore in the current session.

Commenting on the outlook of the market, V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, "With seven days of record intraday highs this year, Nifty is exhibiting great strength. The big emerging market worry of rising bond yields in the US is not impacting India since FIIs have been forced to reduce their selling since they are being completely neutralised by sustained DII buying assisted by retail exuberance. This resilient domestic buying is providing the main support to the ongoing rally in the market, and the strong performance of the economy and improving corporate earnings are solid fundamental support to the market.”

The BSE small cap index has rallied nearly 2000 points in seven sessions. Similarly, BSE mid cap index gained 1,592 pts since February 12. 

The large cap index saw the minimum gain of 266 pts during the period, signaling small cap and mid cap shares have powered the current leg of rally.

Throwing light on the technical outlook and Nifty targets, Rupak De, Senior Technical Analyst, LKP Securities said, "Nifty continues its upward momentum following a consolidation breakout on the daily chart. The trend remains robust as it has sustained itself both above the psychological level of 22000 and the 21EMA on the daily timeframe. On the higher end, it may move towards 22400/22600 once the index decisively surpasses the 22200 mark. Support on the lower end is identified at 22000."

 

Om Mehra, Technical Analyst, SAMCO Securities said, “The daily bullish candle confirms the strong outlook while the hourly chart, with higher highs and higher lows, suggests that the primary trend remains strong. The next rally would likely attempt to reach the 22,300-22,350 zone.”

 

Also read: Stock recommendations by analysts for February 21: Gujarat Alkalies, PNB and SBI Life

Also read: Vibhor Steel Tubes shares hit lower circuit a day after stellar listing