Nifty could pause, then resume climb to 25,400

The Nifty has now rallied for 12 consecutive days. The last time it did so was in 1993, when many of the current market participants were either not born or were mumbling incoherent words. The index has now recovered nearly 4,000 points from the July 23 low of 21,281 , which was the day of the Union Budget announcement. Friday’s session turned out to be strange. Most of the MSCI related stocks, particularly HDFC Bank fell by nearly one percent, Vodafone Idea dropped by 5%, and Dixon tech also ended with a 2% loss. HDFC Bank, which could have taken the Nifty higher on Friday, could not do so. But, the index managed to reach a new record high of 25,268 and closed near the 25,250 mark , despite the selling pressure seen in HDFC Bank. In the first week of the month, there will be reactions in auto stocks based on their monthly sales figures, in PSUs for their business updates, and in other macroeconomic data like the Manufacturing and Services Purchasing Managers Index. For the week the Nifty ended with a gain of 1.6 %, marking its third consecutive weekly advance. During Friday’s trading session, foreign institutions were net buyers in the cash market, mainly due to MSCI adjustments, while domestic institutions were net sellers. The short- term trend of the Nifty is positive, but it is unable to gain sharp upward momentum to reach new highs. Nifty may see further consolidation or a minor dip from the resistance levels of 25,300 – 25,400. Immediate downside support is at 25,100. On Friday, the Index crossed the 51,450 mark intraday. The Nifty 50 strikes between 25,300 and 25,800 have seen open interest for this , on the other hand, Nifty Banks September futures shed 1.5% or 34,845 shares in open interest on Friday.