Why Reliance, HDFC Bank shares hold key for Nifty to hit 20,000 mark — explained

On how to understand whether the upside would lead Nifty index close to 20,000 mark, market experts said that one needs to remain vigilant about the movement of Reliance share price and HDFC Bank share price. They said that it is important for Reliance share price and HDFC Bank share price to gain momentum together, if Nifty has to hit landmark 20,000 mark in current momentum.

Why rally in RIL, HDFC Bank is important?

On why HDFC Bank and Reliance shares hold key in Nifty’s chances of hitting 20,000 mark, Chandan Taparia, Derivative & Technical Analyst at Motilal Oswal said, “Nifty has crucial support at 19,500 whereas it is facing resistance at 19,600 levels. We can expect Nifty to come close to landmark 20,000 mark only when Nifty heavy weights HDFC Bank and Reliance Industries Ltd (RIL) shares gain momentum in unison. These two stocks together hold near 25 per cent weight in the entire index and hence momentum in these two shares in union should be seen as sign of Nifty facing its chances to hit 20,000 mark.”

Echoing with Chandan Taparia’s views, Vaishali Parekh, Vice President – Technical Research at Prabhudas Lilladher said, “Nifty witnessing some volatility during the intraday session on Wednesday but managed to maintain the support placed at 19,500 zone and recovered strongly in the second half to close above the important hurdle of 19,600 levels further improving the bias and sentiment. The participation from the broader markets continue to be strong and we anticipate the benchmark index to come closer to the 20,000 landmark in the coming days.”

Advising stock market investors to keep an eye on RIL shares and HDFC Bank shares, Chandan Taparia said, “For Nifty to come close to 20,000 levels, Reliance share price must come close to ₹2,650 apiece levels whereas HDFC Bank share price has to come around ₹1,700 apiece levels. Currently, RIL share price has strong support placed at ₹2,380 apiece levels whereas HDFC Bank share price has crucial support placed at ₹1,560 per share levels.”

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Updated: 07 Sep 2023, 10:23 AM IST