Following an increase in GDP prediction and monetary policy by the RBI, benchmark indexes saw increases for the sixth week in a row, marking the strongest run of weekly advances in three years. For the first time ever, the Nifty increased above 21,000. Sensex reached a record-breaking high as well. With major contributors HDFC Bank, ICICI Bank, and Axis Bank up more than 1%, Nifty Bank reaches a record high.
Notable participants in these profits were ICICI Bank, Infosys, and HDFC Bank.
On Friday, the Reserve Bank of India’s Monetary Policy Committee (MPC) upheld the policy position of “withdrawal of accommodation” and kept the repo rate at 6.5%.
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In addition, the RBI increased its prediction of real GDP growth to 7% for the fiscal year 2024 from its earlier projection of 6.5%. The Consumer Price Index (CPI)-based inflation estimate, or retail inflation, was projected by the central bank to remain at 5.4% for FY24 in spite of this modification to its inflation forecast.
It is anticipated that the RBI’s decision will contribute to economic expansion. An increase in GDP projections will benefit the market. We anticipate that the rate standstill will last for a while, according to Master Capital Services Ltd.’s senior vice president Arvinder Singh Nanda.
The Nifty 50 crossed above 21,000 for the first time following the policy announcement, and it reached an all-time high of 21,006.10 during the session. In the same trading session, the Sensex also hit a new record high of 69,893.8.
The Bharatiya Janata Party’s (BJP) overwhelming win in the most recent state elections was another important factor, as it increased investor confidence in the consistency and sustainability of the government’s economic policies.
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At the close, the Nifty 50 was up 68 points, or 0.33 percent, at 20,969.40. At the same time, the Sensex finished the day up 304 points, or 0.44 percent, at 69,825.60.
Furthermore, the Indian economy received much-needed respite from declining crude oil prices since reduced oil import costs result in lower inflation and a better balance of payments. Santosh Meena, Head of Research at Swastika Investmart Ltd., added that “a weakening US dollar index and lower US bond yields further bolstered investor sentiment by making Indian equities more attractive relative to their global counterparts.”
The recent trading session saw a more than 2% gain in crude oil prices, driven by positive U.S. statistics that supported expectations of rising demand. Notwithstanding this encouraging improvement, the benchmarks for crude oil had weekly declines for the seventh time in a row, which is the longest such streak in five years. This declines were mostly caused by ongoing worries about oversupply.
What to anticipate from Bank Nifty and Nifty50 today is as follows:
Nifty50 Forecast
The Nifty50 touched an all-time high of 21,006.10 in the previous session, breaking beyond the 21,000 barrier for the first time.
The index looks ready to keep rising in a bull market environment, with 21,500 as its short-term aim. Even with some consolidation, the impetus is still very strong. Important barriers are located between 21,000 and 21,100, with a critical base of support at 20,600, according to Nanda.
Forecast for the Bank Nifty
In Friday’s previous session, the Financial Services index concluded 0.91 percent higher, while Nifty Bank ended with a 0.90 percent gain.
“At the moment, both the Nifty and Bank Nifty are trading in unfamiliar terrain and are exhibiting significant positive momentum. The important resistance level of 46300 is being comfortably broken by Bank Nifty, with 47700–48000 serving as its immediate target range. It can be used to raise one’s psychological threshold to 50,000. There is an immediate demand zone between 47000 and 46800, with 46300 serving as a key level of support, according to Meena.
