Nifty's Rally and What's Next: Analyzing the Influencers

In the recent investing landscape, a momentous event happened: The Nifty index hit an all-time high of 22,000. But the whirlwind pace of this development has quite a few investors scratching their heads, asking: 'What next?'

Speed of the Rally

• Nifty's rally from 21,000 to 22,000 was surprisingly fast, taking roughly 27 trading sessions.
• Comparatively, the index's previous thousand-point leaps took less time: approximately 15 trading sessions from 19,000 to 20,000 and a staggering eight trading sessions from 20,000 to 21,000.

The Trigger for the Surge

A critical spark for the recent rally was the better-than-expected results from Infosys. This, along with Wipro hitting an upper circuit of 10% due to surpassing market expectations, initiated the surge.

Analyzing The Key Players

Infosys

Infosys, currently at a resistive level, displays a potential gap upwards if its resistance is overcome.

Wipro

Wipro's performance, sluggish in the past, needs to be watched carefully. After a long period of sideways trending, it breached the range in 2020 and is currently on an upward trajectory.

Nifty IT

Despite hitting all-time high levels, Nifty IT is yet to cross its peak point. However, with strong indices like Infosys, TCS and Wipro, the IT space remains bullish.

The Role of Banking Stocks

As heavyweight champions, HDFC Bank and ICICI Bank could significantly impact Nifty's progression based on their upcoming results:

1. HDFC Bank: HDFC Bank, stagnating for a while at a clear resistance level, exhibits an inverted Head and Shoulder pattern. If the bank's results are in favor, Nifty could witness a boost.
2. ICICI Bank: Akin to its competitor, ICICI Bank is currently at a crucial level, with its performance on the weekend determining the bank's potential to break resistance.
3. State Bank of India (SBI): Currently situated at the retest level after breaking its resistance, SBI could be a stock in focus, especially given the ongoing bullish sentiment about the PSU sector.

The NSE Option Chain Data

The NSE option chain data displays a massive amount of activity at the 22,000 mark. If the market keeps heading northwards, it could trap many at the 22,000 and 22,100 levels, leading to a potential zoom to 22,200.

The Future of Nifty

With the heavyweight banking sector's results due this week, their performance can make or break Nifty's potential upward stride. If the results spur positive sentiment, Nifty could aim for 22,200; bad results, on the other hand, could see some pullback. Thus, the future trajectory of Nifty remains heavily dependent on these key influencers.