Nifty Marks Record 12th Straight Gain, Sensex Up 230 Points as Pharma and Realty Stocks Rally

The Indian stock market continued its bullish momentum on August 30, with the Nifty 50 logging its twelfth consecutive session of gains, the longest-ever rally in its history. The Sensex also closed at a record high, driven by significant gains in realty and pharma stocks.

• Sensex: Up 231 points or 0.28%, closing at 82,365.77.
• Nifty: Up 83.90 points or 0.33%, finishing at 25,235.90.
• Market Breadth: 2,115 shares advanced, 1,630 shares declined, and 117 remained unchanged.

Sectoral Performance: Realty and Pharma Lead the Way

Realty and pharma stocks were the top performers of the day, each rising by over 1%, while the FMCG sector lagged, weighed down by declines in ITC, Marico, and Dabur.

• Top Gainers: Cipla, Bajaj Finance, Divis Labs, M&M, Bajaj Finserv.
• Top Losers: Tata Motors, Reliance, Tech Mahindra, ITC, Coal India.

Broader Market Performance: Midcap and Smallcap Indices Outperform

Despite concerns over stretched valuations, the broader market indices rebounded, with mid-cap and small-cap indices rising by 0.5% and 0.8%, respectively.

• India VIX: The market volatility gauge eased further, dropping nearly 3% to settle at 13.4 levels, indicating a stable trading environment.

Market Insights: Experts Weigh In on Continued Rally

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services:
Vijayakumar highlighted the market’s remarkable stability, attributing it to domestic institutional investors (DIIs) and high-net-worth individuals (HNWIs) accumulating quality large-cap stocks. He noted that foreign institutional investors (FIIs) have reduced selling, adding to the positive momentum.

Auto Sector Highlight:
M&M was a standout performer in the auto sector after announcing a partnership with Sentrycs to develop anti-drone technology, positioning itself as a key player in safeguarding India’s critical infrastructure.

Technical View: Nifty Likely to Target 25,400

The Nifty 50’s momentum remains robust, with the index reaching fresh all-time highs for three consecutive sessions. Analysts suggest that the index may soon hit the 25,400 mark, with strong support at 25,000.

Rajesh Bhosale, Equity Technical Analyst at Angel One:
Bhosale emphasized that the market’s bullish gaps indicate continued buying interest, with the next potential targets being 25,400 and 25,500. He cautioned that the uptrend might encounter some resistance, but the overall bullish trend remains intact.

Options Data Analysis:
Options data suggests that the Nifty 50 may face resistance at 25,700-25,800, with support at 25,000. The maximum Call open interest was seen at the 26,000 strike, indicating a potential upside target, while 25,200 and 25,000 strikes held the highest Put open interest.

Amol Athawale, VP-Technical Research at Kotak Securities:
Athawale advises trend-following traders to maintain their positions as long as the Nifty remains above 25,000. He noted that a drop below this level could signal a reversal, prompting traders to exit long positions.

Bank Nifty: Eyes on 51,500 Breakout

The Bank Nifty gained 198 points to close at 51,351, maintaining its position above a key resistance trendline. Analysts see potential for the index to rally further, with immediate resistance at 51,550 and support at 51,000.

Amol Athawale’s Outlook:
Athawale highlighted the importance of the 51,550 level, suggesting that a breakout could lead to a rally towards 52,000-52,500. Conversely, a dip below 51,000 could shift market sentiment, potentially triggering a decline towards 50,500.