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Markets at new highs in massive rally driven by IT heavyweights

Indian markets soared to new heights in a powerful rally, driven by IT heavyweights, says Vinod Nair, Head of Research, Geojit Financial Services.

New Delhi, Jan 12,2024:  Indian markets soared to new heights in a powerful rally, driven by IT heavyweights, says Vinod Nair, Head of Research, Geojit Financial Services.

Green shoots of recovery in the IT sector on the back of an improved outlook for BFSI in FY25 positively influenced market sentiments. The robust performance of PSU banking stocks is underscored by the inherent synergy between their loan portfolios and the prevailing business cycle, he said.

Noteworthy is the fact that this upward surge remained resilient amid mixed global cues on account of higher-than-expected US inflation and positive job data, which tempered expectations for an imminent rate cut by the US Fed, he added.

Kunal Shah, Senior Technical & Derivative Analyst, LKP Securities said the Nifty index exhibited significant strength, securing a notable breakout on the daily chart as it surpassed the key resistance level of 21,800.

This bullish move positions the index for potential short-term targets of 22,000 and 22,200.

Traders are advised to consider buying opportunities on any dips toward the support level. The momentum indicator RSI has also provided a buy crossover, further confirming the bullish sentiment in the market.

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