Closing Bell: Sensex ends 617 pts higher, Nifty above 15,100; auto, metal stocks lead

Taking Stock | Bulls Maintain Grip On D-Street For 6th Straight Session As Sensex, Nifty End 1% Higher

Broader markets outperformed the benchmarks with BSE Midcap and Smallcap indices adding 1.5 percent each.... Read More

The underlying trend of Nifty continues to be positive and one may expect further upside in the short term. The next upside levels to be watched around 15,500, which is at 1.618% fibonacci extension (connected from Jan 20 top to March 20 bottom). This could be achieved in the next one week. Immediate support is placed at 14,960.

The bulls continued to dominate the benchmark indices following supportive global cues. The Nifty index ended higher by 1.3% to close above the 15,100 levels. The broader markets too participated as both Midcap and Smallcap ended higher by 1.5% each. On the sector front, except FMCG, all the other indices ended in green wherein Auto, Metal and Consumer Durables were the top gainers.

We are eyeing 15,200 in Nifty and going ahead, earnings and global cues will dictate the market trend. Market participants would actively track key macro data like IIP, CPI and WPI data.

Strong global cues supported the domestic rally. PSU Banks, which was on a bull run paused today with some correction noticeable in FMCGs. The overall market is maintaining its buoyancy with rally in all sectors especially auto, IT and metals. Improved domestic outlook is encouraging sustained FPI inflows.

The markets kept the upward trajectory active all day and moved from strength to greater strength! We should be eyeing the 15,200 mark as the next target for the Nifty and if we can sustain there, we could achieve 15,500 during the course of February. 14,600 is a good support for the index and as long as that holds, traders can optimise the risk on their trades by entering positions on dips or intraday corrections.

Rupee traded weak in the morning session but lost some momentum as USDINR pair takes support near 72.95, with higher Crude prices it look likely that rupee would find difficulty to cross and maintain above 72.90. Although financial markets seem positive which keep money flowing into markets helping rupee. Broadly the range remains between 72.70-73.45.

Indian rupee erased intraday gains and endedat day's lowat 72.96per dollar, amid domestic equity market ended at fresh record closing high.It opened higher at 72.87 per dollar against Friday's close of 72.92 and traded in the range of 72.81-72.97.

The market witnessed strong trends and an attempt to overcome the resistance level around the Nifty 50 Index level of 15160-15190 (Important Fibonacci extension zones). While sustaining above 15,000 is the key factor from a short-term perspective, maintaining above this level market to gain momentum and open the gate for a movement till 15,250-15,270. The momentum indicators like RSI, MACD to recover and market breadth to maintain its strength.

: The benchmark indices ended higher for the sixth consecutive day on February 8 hitting fresh record highs supported by the auto, metal, infra and IT stocks.

At close, the Sensex was up 617.14 points or 1.22% at 51,348.77, and the Nifty was up 191.50 points or 1.28% at 15,115.80. About 1689 shares have advanced, 1284 shares declined, and 188 shares are unchanged.

M&M, Hindalco Industries, Tata Motors, Shree Cements and JSW Steel were among major gainers on the Nifty, while losers were Britannia Industries, HUL, Kotak Mahindra Bank, Divis Labs and Bajaj Finance.

Except FMCG and PSU Bank, other sectoral indices ended in the green with Nifty Auto and Metal indices jumped 3 percent each.

Net profit jumped 26.2% QoQ at Rs 16.8 crore against Rs 13.3 crore and revenue was up 5.9% at Rs 74.4 crore versus Rs 70.2 crore.

The stellar response to the Brookfield REITs IPO last week demonstrates investors' confidence in India's commercial real estate segment. Despite the pandemic investment continued to flow into quality, rent bearing assets. The response to the IPO will help quell fears if any in the mind of investors on the outlook for Indian commercial real estate assets.

The progressive Unlock by the government, nation-wide vaccination drive has led to businesses opening up their offices for the workforce, with this the demand/activities in office leasing is expected to pick up the pace. The government's focus on a self-reliant economy will result in more businesses setting up offices domestically. The relaxation on TDS deduction announced in the budget will help boost sentiment.

Gold prices are trading above $1,800 after heavy sell last weeks to $1,784. Marginal weakness in the dollar index and rising stimulus hope is keeping gold prices firm. Last week, Senate voted to adopt a budget blueprint for President Biden's $1.9 trillion pandemic relief package and on Sunday Treasury Secretary Janet Yellen supported President Biden's for betterment in the employment situation.

However, rising bond yield is likely to keep precious metals prices under pressure. US Ten-year Treasury yields soared to an over 10-month high of 1.19% on Monday due to disappointing jobs data and inflationary expectations last week. Emerging-market yields also rising in tandem to net changes in US rates.

According to the CFTC Commitments of Traders report for the week ended February 2, net long for gold futures dropped -420 contracts to 257126 for the week. Speculative long position increased 820 contracts, while shorts also increased 1240 contracts.

Last week, Reserve Bank of Australia (RBA) governor Philip Lowe said that his 0.1 percent rate would be pinned to the floor until 2024 while he ramped up his quantitative easing (QE) bond-buying spree. However, Bank of England’s Monetary Policy Committee (MPC) said inflation could be back at a target within a year, and maybe it was time to start rethinking the conditions under which QE could be unwound. Gold prices are likely to find support around $1,772 while key resistance is level is seen near $1,826-$1,855.

Commodities Strategy For This Week By CapitalVia Global Research

Purohit recommends a sell-on-rise in Gold and Zinc, while a buy-on-dips strategy can be deployed in MCX Silver, Crude Oil and Nickel.... Read More