Nifty has reclaimed the 20,000 mark after 47 trading sessions, driven by positive global cues and notable gains in heavyweights like HDFC Bank, Infosys, and Reliance Industries (RIL). The market optimism was further supported by dovish remarks from US Federal Reserve official Christopher Waller, hinting at a potential interest rate cut in March 2024 if inflation continues to decrease.
The US-based Federal Retirement Thrift Investment Board (FRTIB) announced a possible transition to a new MSCI Index, potentially bringing in $809 million in inflows for RIL, ICICI Bank, Infosys, HDFC Bank, and Tata Consultancy Services (TCS), according to Abhilash Pagaria, Head of Nuvama Alternative & Quantitative Research. This contributed to gains of up to 1 percent in index heavyweights.
Asian stocks reached one-week highs on positive market sentiment, with the US 10-year bond yield dropping to 4.3 percent and the dollar index slipping below 103, seen as favorable indicators for local markets. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that the global market backdrop remains favorable, suggesting the rally in India is likely to continue.
According Research Analyst, the Nifty may find support at 19,850, followed by 19,800 and 19,750. On the higher side, after crossing 20,000, the immediate resistance for the index is observed at 20,100 and 20,150.
The strengthening of the rupee against the US dollar also contributed to positive sentiment, as the local currency rose 3 paise to 83.31 against the dollar in early trade. The dollar index, tracking the greenback against a basket of six major world currencies, declined 0.09 percent to the 102.65 level.
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