The Indian equity benchmarks ended higher for the second day on February 9 amid buying across the sectors, barring PSU banks, on the eve of the Reserve Bank of India's (RBI) monetary policy committee outcome.
At close, the Sensex was up 657.39 points, or 1.14 percent, at 58,465.97, and the Nifty was up 197 points or 1.14 percent at 17,463.80.
Amid positive global cues, the indices started on a strong note and held the gains throughout the session, closing near the day's high.
Also Read: Explainer | MPC decision on Thursday. What are the likely scenarios? 10 key questions answered
"Strong global market cues boosted local benchmark gauges as investors lapped up beaten-down stocks. Buying was seen in banking, realty and auto stocks on hopes interest rates may remain unchanged in the credit policy meet this week," said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
"The last-hour intraday breakout formation indicated continuation of an uptrend in the near future. In addition, on intraday charts, the Nifty is holding higher bottom formation which is broadly positive."
For the trend-following traders, 17,365 would be the deciding level and above it, the index can move to 17,550-17625, he said. If the index remains below 17,350, there is a strong possibility of a quick correction to 17300-1724.
Coal India, Maruti Suzuki, Hindalco, IndusInd Bank and Bajaj Auto were the top Nifty gainers, while losers were ONGC, Sun Pharma, BPCL, ITC and SBI Life Insurance.
Among sectors, Nifty Bank, auto, IT, pharma, metal and bank added 1-2 percent, while PSU Bank index shed 0.6 percent.
The broader market performed in line with the benchmarks. The BSE midcap index gained 1.2 percent and the smallcap 0.6 percent.
Stocks and sectors
On the BSE, except oil & gas all sectoral indices ended in the green, with capital goods, auto, IT, metal and bank rising 1-2 percent.
A long build-up was seen in Abbott India, Indiamart Intermesh and Rain Industries, while a short build-up was seen in Mahanagar Gas, Godrej Consumer Products and ONGC.
Among individual stocks, a volume spike of more than 300 percent was seen in Abbott India, Bosch and Sun TV Network.
More than 150 stocks, including SPML Infra, Maruti Suzuki India and Zee Media Corporation, hit a 52-week high on the BSE.
Outlook for February 10
Rupak De, Senior Technical Analyst, LKP Securities
The Nifty has formed a green candle after a Dragonfly Doji pattern on the daily chart, suggesting a short-term bullish reversal.
On the higher end, immediate resistance is visible at 17,530. A decisive move above 17,530 may induce a rally towards the recent peak of 17,775-17,800. On the lower end, support is placed at 17,315.
Palak Kothari, Research Associate, Choice Broking
On the technical front, the index has confirmed the Hammer Candlestick Pattern on the daily chart, which points to strength.
The index gave a breakout of the falling trend line and sustained above it and also traded above the middle band of Bollinger, which suggests upside movement in the counter.
On an hourly chart, the index has been trading above 9*21-HMA with a positive crossover, which suggests strength for the next session.
Moreover, the daily momentum indicator Stochastic is trading with a positive crossover, which adds strength to prices.
The index has support at 17,200, while resistance comes at 17,600. On the other hand, the Bank Nifty has support at 38,000 and resistance at 39,400.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
On the way up, the Nifty crossed its key hourly moving averages that are near 17,300-17,400. This will now act as a near-term support zone and as long as the index trades above it, it can continue on the recovery path.
On the higher side, the index can test 17,800 in the short term.
Disclaimer: The views and investment tips expressed by 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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
