In a historic development, the Nifty index marked a new pinnacle, crossing the unprecedented 21,000 level for the first time on Friday, December 8. Soaring as high as 105 points in intra-day deals, the Nifty index culminated at 21,006.10, showcasing an upward momentum from the previous day’s close at 20,901.15. Notably, it took the Nifty just 61 sessions to ascend from 20,000 to 21,000 after reaching the 20,000 mark on September 11 earlier this year.
Simultaneously, the Sensex also achieved a record high of 69,888.33 in intraday transactions, registering a substantial gain of nearly 367 points. The surge in the market was fueled by the Reserve Bank of India’s decision to maintain the repo rate at 6.5%, coupled with an upward revision in the FY24 GDP forecast to 7% from the prior estimate of 6.5%. Despite retaining the FY24 CPI inflation projection at 5.4%, the Monetary Policy Committee reaffirmed its commitment to a policy stance focused on the “withdrawal of accommodation.”
Anticipating short-term market dynamics, experts predict a range-bound behavior for the Nifty within 20,850-21,000, citing support levels between 20,675 and 20,725, with resistance expected in the 20,940-21,000 range. The Bank Nifty is also forecasted to find support in the 46,500-46,650 range, encountering resistance between 46,925 and 47,000.
This momentous achievement marks the fifth session in December where the Nifty has reached a record high. Factors contributing to this surge include continued foreign investor inflows, robust macro data, declining crude oil prices, and supportive global market trends. As the market undergoes a period of consolidation around current levels, industry experts foresee the initiation of the next phase of the market rally.
Nifty50 – A Journey from 1,000 to 21,000 In a recent report by NSE, it was revealed that Nifty 50, which commenced its journey in November 1995 with a base value of 1,000, reached the remarkable milestone of 20,000 on September 11, 2023. This journey spanned over 27 years, 10 months, and 8 days, with the first 1,000-point rise taking Nifty 9 years, 1 month, and 10 days. The index touched the 2,000 level on December 14, 2004, marking a significant evolution in India’s financial landscape.