Equity benchmarks the Sensex and the Nifty rallied a percent each on January 31, aided by across the board buying on the budget eve and ahead of the US Federal Reserve meeting outcome.
At close, the Sensex was up 612.21 points, or 0.86 percent, at 71,752.11, and the Nifty was up 203.60 points, or 0.95 percent, at 21,725.70.
Amid mixed global cues, the market started on a negative note but erased the losses in the initial hours to trade higher with the Nifty going past the 21,700 mark during the day.
Stocks and sectors
Biggest Nifty gainers included Dr Reddy's Laboratories, Eicher Motors, Sun Pharma, Divis Labs, Tata Motors, while losers were L&T, Titan Company, Tata Consumer and BPCL.
Except capital goods, all sectoral indices ended in the green, with auto, bank, healthcare, power, metal and realty up 1-2 percent.
The BSE midcap index added 1.5 percent and the smallcap index nearly 2 percent.
For the month, the Sensex fell 0.67 percent, while the Nifty ended flat.
Among individual stocks, a volume spike of more than 300 percent was seen in PVR Inox, Ambuja Cements and Sun Pharma
A long build-up was seen in Voltas, Bank of Baroda and Gujarat Gas, while a short build-up was seen in L&T, Indus Towers and Cholamandalam Investment and Finance Company.
More than 400 stocks touched their 52-week high on the BSE, including ACC, AIA Engineering, Amara Raja Batteries, Bayer CropSciences, Delhivery, Glenmark Pharma, Godfrey Phillips, HCC, ICICI Securities, Indian Metals, L&T Technology, Lupin, Morepen Lab, MTNL, NMDC Steel, Paisalo Digital, Patel Engineering, PB Fintech, Transport Corporation, UCO Bank, Usha Martin, Vakrangee and Voltas. Click here for the full list
Outlook for February 1
Aditya Gaggar Director of Progressive Shares:
The markets started the day on a negative note but the level of 21,460 acted as a strong support for a reversal. A sharp uptick in the Banking and Pharma stocks propelled the Index to extend its gains further to settle the day at 21,725.70 with gains of 203.60 points.
All the sectors ended the day in green with Pharma and PSU Banks being the top performers. With gains of 1.63% & 2.25%, Mid and Smallcaps outshined the Frontline Index.
The Index has formed a Piercing Candlestick pattern which is bullish and forming a right shoulder of an Inverted Head & Shoulder pattern. A strong move above 21,850 will be considered as a pattern breakout and in that case, the upside target is 22,470. The nearest support is placed at 21,615 while the level of 21,820 will be an immediate resistance.
Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas:
The Nifty opened marginally in the red and as the day progressed it witnessed buying interest and closed the day in the green up ~200 points. On the daily charts we can observe that the Nifty is broadly trading within the range of 21100 – 21800 since the past nine trading sessions. The Nifty has been trading in a volatile manner within this broad range. The momentum setup is providing a divergent signal as both daily and hourly momentum indicators have a negative crossover but prices are moving higher. Under such a situation when the price and momentum indicator are not in sync it generally leads to a range bound move. Considering the event of interim budget volatility is likely to continue. Key support levels are 21550 – 21500 while immediate hurdle zone is placed at 21850 – 21900.
Bank Nifty witnessed a sharp surge during the day and marched towards 46000. On the upside it is approaching key hurdles placed in the range 46370 – 46640 where the key daily moving averages are placed. Thus, the current rally can extend towards this zone from a couple of days perspective. On the downside, 45200 shall act as a crucial support zone.
Rupak De, Senior Technical Analyst, LKP Securities
The Nifty has formed a Piercing Line pattern on the daily chart, following a dark cloud cover in the preceding trading session. This consecutive complete reversal pattern indicates a highly volatile market sentiment. The trend may continue to be volatile on Thursday, especially as the interim budget will be delivered. Support on the lower end is situated at 21500, while a decisive move above 21750 might trigger a rally towards 22100 and beyond.
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