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Indian Stock Markets Soar to Record Heights: Nifty and Sensex Hit New Peaks

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Rafia Tasleem
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Indian Stock Markets Soar to Record Heights: Nifty and Sensex Hit New Peaks

In a historic moment for the Indian stock market, the benchmark indices, Nifty 50 and BSE Sensex, soared to unprecedented heights on December 8. The Nifty 50 index, a barometer of 50 stocks, skyrocketed to a peak of 21,006.10. Simultaneously, the BSE Sensex, comprising 30 shares, registered a record 69,888.33.

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The Underpinning Factors

The Nifty 50's remarkable ascent was propelled by 49 out of its 50 constituent stocks trading above their 20 and 50-day moving averages (DMA/SMA). Additionally, 48 stocks positioned themselves above their 200 DMA. The sole exceptions were Cipla, trading below the 20-DMA, and Bajaj Finance, below the 50-DMA. Hindustan Unilever Limited and UPL were the only two stocks below the 200-DMA.

This positive market development followed the Reserve Bank of India's (RBI) decision to hold the repo rate at 6.5 percent for the fifth consecutive time, aligning with market expectations.

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Market Projections

Technical analysts, including Riyank Arora from Mehta Equities Ltd, foresee some market consolidation before further upward movement. The Nifty is projected to oscillate between 20,850 and 21,000 before targeting higher levels.

Notably, HDFC Bank, which holds significant sway in the Nifty 50, saw over a 1 percent increase in its stock price. Experts suggest that HDFC Bank's stock is poised for further growth, with buying opportunities on pull-backs towards Rs 1,620 and a stop loss recommendation below Rs 1,590.

Moving Forward

While the stock market's performance paints a bullish picture, investors should approach this with caution. The views and investment tips expressed are the opinions of individual experts and are not endorsed by Moneycontrol.com. As always, it is advised to consult certified experts before making investment decisions.

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