Sensex, Nifty at all-time highs; Tata Motors zooms by 17 per cent, Tata Power jumps by 9 per cent

Market Update at 10:15 AM:  The markets trade at record highs with Nifty trading comfortably above 18,100 levels. Auto stocks continue their positive momentum with Tata Motors gaining by a whopping 16 per cent on an intraday basis. The Tata Motors ADR on Monday indicated a stellar rally as it closed at $31.65, up by ~13 per cent.  

Mahindra and Mahindra is the top Sensex gainer on Wednesday even as Bajaj Auto trades above the important 4,000 levels on an intraday basis. Titan and Power Grid are trading with gains in excess of 2 per cent each while Tata Steel is up by nearly 2 per cent. LT , Ultratech Cement , Sun Pharma and Bajaj Finserv are up by more than 1 per cent each.  

The rally in banks and auto stocks is impressive and is pushing frontline indices higher.  

The broader markets are seen outperforming with the BSE MidCap index up by ~1 per cent and BSE SmallCap index up by 0.80 per cent.  

Tata Power is seen continuing its stellar rally on Wednesday and is up by over 8 per cent on an intraday basis.  

BSE Power index, BSE Metal index, BSE Consumer Durables index and BSE Industrials along with BSE Auto index are seen outperforming the frontline indices with good margin.  

Nifty opened the trading session with a mild cut and but recovered soon. However, it failed to sustain at higher levels and slipped lower to test the level of 17,864 on the downside. Thereafter, the bulls made a strong recovery and ended the day near the day’s high. Nifty closed at 17,991.95 with gains of 46 points. Nifty IT index declined by another 0.88 per cent. The PSU Bank index was the top gainer with gains of over 3 per cent. Media, FMCG, and metal indices advanced by over one per cent. All other sectoral indices closed with half a per cent gain.   

Nifty decisively close above the 17,948 resistance and registered a new high close. With this decisive close, doubts on-trend has erased. Though Nifty traded within the previous day's range and subdued morning session, it formed a strong bullish candle with strong buying support from the lower levels. It had formed an inside bar candle and hence, a follow-through movement would instil confidence.   

Tuesday’s move is exactly the opposite of Monday. The RSI has broken out of the downward channel and closed above the double bottom valley point. The positive movement indicator i.e. +DI has not made a higher high, which is a concern. The MACD is about to give a buy signal. We continue to reiterate there are no bearish signals in the market. The short-term support moved higher to 17,900 level while the 20-DMA is at 17,708. Unless Nifty breaks below these two important levels, the market is likely to stay bullish.   

Infosys and Wipro would announce their results on Wednesday and the outcome of this could dictate the trend of the market in the near term.