Nifty records longest winning streak of 14 sessions; breaks 2007’s 11-day feat

The domestic equity benchmark Nifty50 managed to end higher on Monday, albeit only by a whisker, extending its winning streak for a record 14 consecutive sessions. This is the blue-chip index's first non-stop rally for 14 straight trading days since its inception in April 1996. With this, the benchmark index, representing the weighted average of 50 of the largest Indian companies listed on the National Stock Exchange (NSE), has broken its previous record of 11 straight session gaining streak in October 2007.

The historical data indicates that the Nifty50 index has managed to gain for 11 straight sessions only once, while it continued 10-day rally on six occasions, and 10-day uptrend on eight occasions.

In the last 14 sessions, the Nifty has risen 1,141 points, or 4.7%, from 24,139 levels at the close of trade on August 13.

On Tuesday, the NSE Nifty rose marginally by 1.15 points to end flat at 25,280, maintaining its streak of closing in the green for the 14th straight session. On the other hand, the BSE Sensex closed 4.40 points lower at 82,555, snapping its 10-session winning streak.

During the session, the Nifty index fluctuated within a narrow range, hitting a high and low of 25,322 and 25,236, respectively, led by gains in major banking stocks as well as FMCG players. The market breadth, indicating the overall strength remained flat, as the session witnessed selective buying in the midcap and smallcap segments.

The top five gainers on the Nifty pack were SBI Life, Bajaj Finserv, ICICI Bank, HDFC Life, and Hero MotoCorp, rising in the range of 1-1.7%. On the flip side, Bajaj Finance, ONGC, Infosys, Adani Ports & SEZ, and HCLTech were the top losers, falling up to 1.36%.

The market sentiment was dented by mixed global signals and the lack of any major trigger, allowing investors to take some breather after the recent sustained rally. "Amid mixed global signals and the absence of significant new catalysts, aside from the anticipated Fed rate cut, which is already factored in, the domestic market took a breather. Mild caution emerged due to a recent slowdown in manufacturing activities, which indicates a slowdown in demand,” says Vinod Nair, Head of Research, Geojit Financial Services.

“However, predictions of an above-normal monsoon extending through September and accelerated capex by the government of India in the H2FY25 boosted consumption and rural-based stocks like FMCG stocks,” adds Nair.

From a technical standpoint, Nifty remained rangebound, encountering resistance at 25,300, highlighting strong call option writing at that strike. “Moving forward, only a decisive move above 25,300 might trigger a rally toward 25,500. On the downside, support is positioned at 25,200 and 25,000," says Rupak De, Senior Technical Analyst, LKP Securities. 

The market experts anticipate further consolidation in the Nifty, given the mixed signals from key sectors. “Additionally, favorable cues from global markets, particularly the U.S., add to the optimistic outlook. We recommend maintaining a “buy on dips” strategy, with a focus on stock selection,” says Ajit Mishra, SVP, Research, Religare Broking,

According to Osho Krishan, Senior Analyst - Technical & Derivatives, Angel One, the market breadth suggests a strong tug of war between the Bulls and Bears. “Looking ahead, 25,200 is poised to act as a key support for the benchmark, while a solid support zone is expected within the 25,100-25,000 range. On the higher end of the spectrum, 25,350-25,400 is anticipated to act as intermediate resistance, followed by the sturdy hurdle of 25,500 in the comparable period.”

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