The Nifty 50 index held steady on Thursday as investors reacted to the latest minutes by the Federal Reserve. The index rose by more than 0.75% and is trading at Rs 16,113, which is the highest it has been since June 10th of this year. This price is about 5.6% above the lowest point in June. Similarly, the BSE Sensex index rose by more than 1.10%.
Indian stocks rebound
The performance of the Nifty 50 is in line with that of other global indices. In the United States, futures tied to the Dow Jones rose by over 18 points while those linked to the S&P 500 and Nasdaq 100 rose by less than 10 basis points.
Indian stocks have done better than their global peers because India is poised to have a stronger recovery than other countries. For example, the country’s economy is now the fifth-biggest as its GDP crossed the $3 trillion level recently. The economy has benefited from the relatively cheaper oil and gas from Russia.
At the same time, many Indian exporters have done well because of the sliding Indian rupee. The USD to INR price crossed the important resistance at 80 as king dollar reigns supreme.
Meanwhile, the performance of the Indian stock market has helped to propel the net worth of its richest people. Gautam Adani has seen his net worth surge by $23 billion to $100 billion. Mukesh Ambani has lost just $3 billion this year, which is better than that of other peers.
The best performing Nifty 50 stocks were Titan Company, Tata Motors, Asian Paints, Power Grid, Hindalco Industries, and Mahindra. All these shares jumped by more than 1%. On the other hand, the worst performers were Britannia Industries, Bajaj Finserv, Hindustan Unilever, and Nestle.
Nifty 50 forecast
The Nifty index has been on a slow recovery path in the past few days. It has managed to move above the important resistance point at Rs 15,674, which was the lowest point in March. The index also did a break and retest by moving back to Rs 15,674. It has managed to move above the 25-day moving average while the MACD has risen above the neutral point.
Therefore, the Nifty 50 index will likely continue rising as bulls target the key resistance at Rs 16,500. A move below the support at Rs 15,700 will invalidate the bullish view.
