Mid-day Mood | Nifty, Sensex recoup early losses on gains in heavyweight banks

The benchmark Sensex and Nifty 50 recouped opening losses to trade marginally higher as of afternoon trade on February 20. The market opened on a negative note, tracking subdued cues from Asian markets which did little to lift sentiment for domestic equities. However, gains in heavyweight banking stocks like HDFC Bank, Axis Bank, ICICI Bank and Kotak Mahindra Bank helped lift the two benchmarks out of the red.

Around noon, the Sensex was up 241.66 points or 0.33 percent at 72,949.82, and the Nifty was up 38.40 points or 0.17 percent at 22,160.70.

Trend in the overall market remained subdued as losers outnumbered gainers in trade. About 1,765 shares rose, 1,469 fell, while 76 remained unchanged.

The broader market too saw some profit-booking with the BSE Smallcap index trading flat and the BSE Midcap down 0.3 percent.

Fundamental View

"An important characteristic of the bull market is its ability to set new successive record highs. And this market has been doing this consistently. This year alone Nifty has set 6 new record highs (intraday) and this is indicative of the strong momentum in the market," said VK Vijayakumar, chief investment strategist at Geojit Financial Services.

"Selling by FIIs triggered by rising bond yields in the US has no impact on this up-trending market where DIIs and domestic HNIs and retail investors are calling the shots."

Vijayakumar also likes that high-quality, fundamentally strong large-caps like RIL, ICICI Bank and Bharti Airtel are taking up the leadership in this bull run. However,  going ahead, he also expects volatility to remain high and sees the possibility of sharp corrections to happen anytime as investors might rush to book profits.

Technical View

"The Nifty's daily chart reveals the formation of a neutral candlestick pattern, signaling indecisiveness between bulls and bears. Sustaining levels above 22,150 could pave the way for an upward movement towards 22,400 in the short run," said Mandar Bhojane, Research Analyst at Choice Broking.

Bhojane sees immediate support levels for the Nifty 50 at 22,050-22,000, while he anticipates resistance around 22,250 and 22,300.

Follow our market blog to catch all the live action

Key Nifty gainers

Power Grid Corp, HDFC Bank, NTPC, Grasim and Axis Bank

Key Nifty losers

Hero MotoCorp, Coal India, Bajaj Auto, BPCL, and Eicher Motors

Key Sensex gainers

Power Grid Corp, HDFC Bank, NTPC

Key Sensex losers

HCLTech, Infosys, and TCS

Stock moves

Federal Bank: Shares slumped 6 percent after larger private sector lender Kotak Mahindra Bank re-designated KVS Manian as the joint managing director. Manian was reportedly being considered by Federal Bank to succeed Shyam Srinivasan as the managing director and chief executive officer.

Paytm: Stock surged 5 percent after founder and CEO Vijay Shekhar Sharma assured that its QR code and soundbox facilities will continue to work even after the March 15 deadline set by the Reserve Bank of India for the strict restrictions it has slapped on the bank.

Whirlpool: Around 3.2 crore shares, making up for 24.7 percent stake worth Rs 4,039 crore, changed hands in a block deal in early trade. Promoter Whirlpool Mauritius is the likely seller as it was exploring plans to offload as much as 24 percent of company through a block deal for $451 million, according to multiple industry sources.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.