Nifty reclaims 20,000 mark after 2 months: Know driving factors
What's the story
The Nifty soared past 20,000 points today (November 29), a milestone not seen since September 18.
This is thanks to positive global signals and gains in major companies like HDFC Bank, Infosys, and Reliance Industries (RIL).
Market confidence was further bolstered by US Federal Reserve official Christopher Waller's dovish comments, hinting at a possible cut in interest rate as early as March 2024, if inflation continues to decrease.
Details
Rally in index heavyweights and global cues
The US's Federal Retirement Thrift Investment Board's transition to a new MSCI Index could result in $809 million in inflows for RIL, HDFC Bank, Tata Consultancy Services (TCS), ICICI Bank, and Infosys.
Asian stocks reached one-week highs due to the positive market atmosphere, with the US 10-year bond yield falling to 4.3% and the Dollar index dipping below 103 as favorable signs for local markets.
What Next?
Market analysts' view on Nifty's rally
Deven Mehata, a Research Analyst at Choice Broking, added that "according to the charts, the Nifty may be taking support at 19,850, followed by 19,800 and 19,750."
After reaching 20,000, the index's immediate resistance is expected at 20,100 and 20,150.
The INR's appreciation against the US Dollar also played a role in the upbeat market sentiment.
The local currency gained 3p to Rs. 83.31 against the USD in early trading. Meanwhile, the Dollar index fell 0.09% to 102.65.