Indian equity benchmark indices erased losses of the previous two sessions to close a percent higher on January 31, the day the annual Economic Survey, released on the Budget eve, pegged the FY23 GDP forecast between 8 and 8.5 percent.
After a positive opening, the market extended the gains in the afternoon trade, with the Nifty crossing 17,400 ahead of the Union Budget for the financial year 2022-23 which would be presented by Finance Minister Nirmala Sitharaman on February 1.
At close, the Sensex was up 813.94 points or 1.42 percent at 58,014.17, and the Nifty was up 237.80 points or 1.39 percent at 17,339.80.
"Taking positive cues from global markets and favourable takeaways from the Economic Survey report, the market rallied ahead of the Budget Day with all major sectors in the green," said Vinod Nair, Head of Research at Geojit Financial Services.
"The major macro indicators of the survey gave confidence that the country is well placed to face future challenges with GDP growth for FY23 projected at 8-8.5 percent."
Global markets turned positive, backed by gains in the US market as investors ignored geopolitical disturbances and turned their eye towards strong earnings numbers from tech firms, he added.
Also Read:Â Economic Survey 2022 pegs FY23 GDP growth at 8-8.5 percent
Tech Mahindra, Tata Motors, Wipro, BPCL and Bajaj Finserv were the top Nifty gainers, while losers were IndusInd Bank, Kotak Mahindra Bank, UPL, Coal India and HUL.
| Index | Prices | Change | Change% |
|---|---|---|---|
| Sensex | 57,613.72 | -40.14 | -0.07% |
| Nifty 50 | 16,951.70 | -34.00 | -0.20% |
| Nifty Bank | 39,567.90 | 136.60 | +0.35% |
| Biggest Gainer | Prices | Change | Change% |
|---|---|---|---|
| IndusInd Bank | 1,036.15 | 23.30 | +2.30% |
| Biggest Loser | Prices | Change | Change% |
|---|---|---|---|
| Adani Enterpris | 1,600.85 | -122.20 | -7.09% |
| Best Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Bank | 39567.90 | 136.60 | +0.35% |
| Worst Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Auto | 11917.95 | -117.15 | -0.97% |
On the sectoral front, Nifty auto, energy, pharma, IT and PSU Bank indices rose 1-3 percent.
The broader indices performed in line with benchmarks, with BSE midcap index rising 1.7 and smallcap index 1 percent.
Also Read:Â Economic Survey 2022: WPI continues to surge, India needs to be wary of imported inflation
Stocks and sectors
On the BSE, auto, healthcare, IT, oil & gas, and realty indices gained 1-3 percent, while bankex, capital goods, FMCG and power indices were up 0.5-1 percent.
A long build-up was seen in Info Edge, Mindtree and L&T Infotech, while a short build-up was seen in the IndusInd Bank, Atul and Kotak Mahindra Bank.
Among individual stocks, a volume spike of more than 100 percent was seen in Info Edge, Escorts and Marico.
More than 150 stocks, including Oil and Natural Gas Corporation, Canara Bank, IDFC, DB Realty and Gravita India, hit a 52-week high on the BSE.
Also Read:Â Economic Survey 2022: Here are the key takeaways
Outlook for February 1
Sachin Gupta, AVP- Research, Choice Broking
Technically, the Nifty has breached the previous three-day highs and formed a green candle on the daily chart. The index is also trading above 78.6 percent Retracement Levels, which indicates further support around 16,800 levels.
A momentum indicator RSI & MACD is suggesting positive crossover on an hourly chart, which adds positive strength for the coming day.
We are expecting a high volatility on February 1 on the account of the Budget. At present, the index has support at 17,100 and 16,800, while resistance comes at 17,500 and 17,650 levels.
The Bank Nifty has support at 37,300, while resistance is at 38,700.
Ajit Mishra, VP-Research, Religare Broking
It’s going to be a crucial day as all participants would be closely eyeing the Budget. The focus would be on the GDP growth numbers, fiscal deficit target and disinvestment plans.
Besides, sector-specific announcements and any relief on the taxation front would also be on participants’ radars.
At the same time, corporate earnings and auto sales numbers would continue to induce stock-specific volatility.
For further recovery, the Nifty should decisively hold above 17,600 else profit-taking may resume and push the index towards 16,800-17,000.
We recommend maintaining a cautious stance and suggest hedged positions.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
On intraday charts, the Nifty has maintained a higher bottom formation, which also supports the uptrend.
For the bulls, 17,425 would be the important breakout level to watch. If the market manages to trade above it, we can expect a quick uptrend rally up to 17,475-17,550.
On the flip side, a slide below 17,250 can trigger weakness to 17,100 and 17,050 levels.
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