The BSE Sensex climbed 210.94 points, or 0.29 per cent, to trade at 72,296.57 as of 9:57 am, while the Nifty was at 21,949.70, up by 95.90 points or 0.44 per cent.

Pointing out that the Nifty had hit all-time high of 22,126 during the intraday session but fizzled out post-lunch session to erase most of the gains and end near 21,850 levels, Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher Pvt Ltd, stated, “As mentioned earlier, the index has maintained the important support zone of 21,500 levels intact while on the upside, as of now, a close above 22,000 is much required to carry on with the positive note further ahead. The support for the day is seen at 21,700, while the resistance would be at 22,000.”

Commenting on the Nifty outlook, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “The global construct for equity markets continues to be good with the mother market US doing well aided by a surprisingly strong economy. The latest data on job creation in January has again surprised with the addition of 3,53,000 jobs. There are no signs of the US economy tipping into a mild recession any time soon. This means that the Fed rate cuts expected this year are likely to be back-loaded. This has pushed up the 10-year bond yield again above 4 per cent and the dollar index to 104. This might prompt some selling by FIIs. But the market momentum is good supported by strong DII and retail buying.”

Vijayakumar added, “Among the recent results, Tata Motors and Interglobe Aviation stand out and these stocks have more room to go up. RIL is also exhibiting strength.“

Anand James, Chief Market Strategist, Geojit Financial Services, said, “Friday’s rejection trades in the face of record peaks should ideally lead to a full reversal aiming at the 21,200s again, or a deeper dive to 20,800. However, we would like to draw some inspiration from the successful push above the peaks of 23rd and 30th of January, both of which had seen heavy selling. This allows us to pin our hopes on the support clusters around 21,720 or 21,600 to allow bulls to regroup and avoid a full reversal that Friday has indicated. This would also encourage us to retain our upside objective of 22,450-550 for now.”

On Monday, all sectoral indices, except for banks and financial services, traded in green. Nifty Oil & Gas was at 11,338.00, up by 226.50 points or 2.04 per cent; Nifty Auto at 19,741.85, up by 361.35 points or 1.86 per cent; and Nifty Pharma at 18,293.55, up by 321.45 points or 1.79 per cent.

At 10:10 am, major gainers on the BSE were UCO Bank (17.88 per cent up); SJVN (16.87 per cent); IOB (12.97 per cent); NHPC (10.95 per cent); and MMTC (9.99 per cent). Top losers were Paytm (-10 per cent); Tilaknagar Industries (-7.60 per cent); Greenlam Industries (-6.68 per cent); Rolex Rings (-6.39 per cent); and UPL (-5.94 per cent).

Stocks that gained on the NSE as of 10:19 am include; Tata Motors (6.88 per cent); BPCL (3.13 per cent); Cipla (2.34 per cent); Sun Pharma (2.07 per cent); and Coal India (1.81 per cent). 

Published on February 5, 2024