Closing Bell: Sensex, Nifty end at record closing high led by realty, financial stocks

Taking Stock: Sensex Claims 52K, Nifty Breaches 15,300 For The 1st Time; Realty, Financials Stocks Fuel The Rally

On the BSE, Bank index added 3.3 percent and realty index rose over a percent. However, IT, metal and oil & gas indices ended in the red.... Read More

Markets started the week on a robust note and made a new record high, largely led by firm global cues and encouraging domestic macro-economic data. The benchmark opened gap up and hovered in a range for most of the session however renewed buying in the last hour helped the index to close around the day’s high. Consequently, the Nifty index closed at 15,315 levels, up by 1%. A mixed trend continued on the sectoral front wherein banks and realty were the top gainers that supported the rally while FMCG, IT and consumer durables ended in the red.

Markets have resumed the trend after a week-long consolidation phase and we are now eyeing the 15,500 in Nifty. With no major events, participants should keep a close watch on global markets for cues. Also, maintain focus on the selection of stocks and avoid a contrarian approach.

The market has made a strong start to the week on the back of strong and positive domestic flows. The increase in the number of IIP and the easing of CPI inflation led to a recovery in financials. Bank Nifty rose by 1300 points, Finance Nifty rose by 900 points, Nifty 50 rose to 15340 levels and Sensex gained by more than 500 points throughout the day.

It has proven to be the smartest rally after 4 days of aggregation. Based on the daily chart, Nifty / Sensex are moving towards 15500/52500 levels with minor resistance at 15360/52250 level and on the downside, 15270/51850 and 15100/51200 would be the big supports. Our strategy is to reduce weak long positions and we need to make partial profits in positions where there are abnormal gains. Along with financial, the focus should also be on auto stocks.

The markets closed the day on a high note with the Sensex crossing the 52000 mark, with both Sensex and Nifty closing with a gain of more than 1%. What moved the markets was the Bank Nifty, which climbed by 3.65% to 37,425, a significant surge from the 31,000-32,000 levels where it was basing itself for a couple of weeks.

Midcaps, small caps, realty and healthcare too participated in the rise today. Markets elsewhere, in the East as well as early Europe, has been well supported by the fruition of large scale vaccination as also expectations of larger economic stimulus in the US.

Index started a day with good gap and managed to hold the gains throughout the session and closed the day at 15,314 with gains of one percent. Both the indices Nifty & Nifty Bank has witnessed a fresh breakout in today’s session hints overall structure is still buying on the dip and we may see more upside in the near term if managed to hold above 14,250 in Nifty & 37,000 in the Nifty Bank which is immediate & strong support on the downside.

Optimistic global sentiment & improving corporate earnings are leading an uptrend in the market dictated by banking and realty stocks. Mild consolidation is noticed in Pharma & IT, but Mid-caps continue to beat the broad market. WPI inflation soared to 2.03% in January compared to 1.22% in December which is positive for the manufacturing sector showing upside in demand.

Food inflation dipped cooling CPI to 4.06% in January from 4.59% in December 2020, moderation in inflation is in-line with the RBI views, positive for the domestic economy.

Bulls powered Indices to new highs as FPI flows till date in February far exceeded January flows. Buoyed by Q3 earnings and CPI inflation, the day witnessed a ferocious rally in financials backed by positive global cues and return of the elusive capex cycle.

The Nifty continued its strong form and closed almost at the high of the day. We should be heading to 15,500 soon where we could face the next level of resistance. The stop level has been raised to 15,100 and hence traders can build fresh positions for a new target of 15,500.

Benchmark indices have surged on the back of broad buying across the board. With strong global health recovery, pro-growth public policies, systemic liquidity abundance, corporate earnings recovery and improving economic metrics, we seem to be entering a whole new cycle of wealth creation.

Considering the strong positive undercurrent, we expect portfolios with an orientation towards financial services, discretionary consumption and industrials to benefit significantly in the medium term. At this juncture, risk events can be expected to emanate from outside of the country as most Indian macro-economic metrics are supporting a strong growth resurgence.

Market witnessed a positive trend today after a few days of the lackluster movement. The expected levels of the market are likely to be in the range of 15,250 and 15,470, and it’s going to be crucial for the short-term market scenario to sustain above the 15,250 Nifty50 index level. The momentum indicators like RSI, MACD to support the upside move and indicating potential upside from the current market level.

: Benchmark indices rallied for the third consecutive day hitting their fresh record highs intraday on the back of buying seen in the realty and financial names.

At close, the Sensex was up 609.83 points or 1.18% at 52,154.13, and the Nifty was up 151.40 points or 1% at 15,314.70. About 1337 shares have advanced, 1648 shares declined, and 149 shares are unchanged.

Axis Bank, ICICI Bank, SBI, Bajaj Finance and IndusInd Bank were among major gainers on the Nifty, while losers were HDFC Life, SBI Life Insurance, Dr Reddy’s Laboratories, Hero MotoCorp and TCS.

Nifty Bank index rose 3.3 percent, while PSU Bank index added over 2.3 percent. BSE Realty index jumped 1.4 percent, while Midcap and Smallcap indices rose 0.3-1.4 percent.

The Sensex has today hit new all time high levels of 52,000 driven by continued strong flows due to positive global cues. After record monthly inflows of over Rs 60,000 in Nov and Dec 2020 flows slowed down somewhat in January to ~ Rs 19,500 crore. While we did see some profit booking in the second half of January the Union Budget 2020-21 turned the tide around for the market. So far we have already witnessed FII flows of over Rs 20,000 crore in February which is helping drive the markets.

We expect the flows to remain strong for now which should help propel the markets to new highs. However, we expect the pace of the rally to moderate from here on and some profit booking cannot be ruled out at higher levels.

Across the globe, equities are charged on ‘risk-on’ tone as countries and regions are rolling out vaccines and easing lockdown restrictions. This optimism has pushed Indian rupee to surge to 72.57, highest level since Mar 3, 2020. The trading range has shifted to 72.00-73 and RBI seems to be comfortable with rupee appreciating below 73 level.

This week is a holiday thinned market, so fx trading may be uninspiring but RBI intervention will be eyed. The focus will remain on global flash PMIs and Fed minutes and until then 72.50 will act as a strong support in USDINR spot, a break of which can push the spot price towards 72 zone, while 73 will act as an immediate resistance.