Amid a strong optimism in the market, Nifty registered it's best week in two months after rising for six consecutive sessions on Friday (September 8). At close, Nifty was up 0.47 percent or 92.9 points at 19819.9.

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Nifty50 is now just 172 points away from its record closing high of 19,992, made on July 20. Analysts are now eyeing the next big target — the magical 20,000 figure in the coming trading sessions.

But the question on everyone's mind remains how higher can this bull run take Nifty50.

"Nifty has been gaining strength and is inching closer towards its life high of 19,992. With monsoon gradually improving and India set to host G20 summit over the weekend, sentiments are buoyant and may lift market towards its life high and 20k mark over the next few days," said Siddhartha Khemka, Head - Retail Research at Motilal Oswal Financial Services.

The short term trend of Nifty continues to be positive, with immediate support at 19,650 levels said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.

"We expect Nifty to move into new all time highs beyond 20K mark in coming week. The potential upside target of larger triangle upside breakout comes around 20100-20200 levels for the near term," he said.

Rajesh Palviya, SVP (research) at Axis Securities, also expects Nifty to make a high next week led by heavyweights like HDFC Bank and Reliance Industries.

Coal India, NTPC, BPCL, Tata Motors and Larsen and Toubro were among the major Nifty gainers. Losers included UPL, Eicher Motors, Apollo Hospitals, ITC and UltraTech Cement.

With a trend line breakout combined with a decisive close above 19,650, the Nifty index looks set to inch towards a newer high. It may take a breather around the milestone of "20,000" and then progress to 20,300 level, said Ajit Mishra, SVP - Technical Research at Religare Broking.

The analyst added: "On the downside, the 19,500-19,650 zone would offer the cushion, in case of any profit taking. Since all sectors are contributing to the up move, maintain focus on identifying stocks, that are showing relatively higher strength and avoid contrarian trades."

According to Rupak De, Senior Technical analyst at LKP Securities, Nifty displayed strength, primarily driven by strong demand for large-cap stocks. The overall trend remained robust as the index consistently stayed above a critical moving average.

De, however, said that a significant hurdle for the Nifty came in the form of substantial Call writing at the 19900 strike price. "Looking ahead, only a decisive move above the 19900 level has the potential to propel the index towards the 20200 mark. On the flip side, there was substantial Put writing at the 19700 level, providing strong support for the Nifty."

First Published:Sept 10, 2023 6:41 PM IST