Taking Stock: Sensex, Nifty at a new high on blowout GDP data, Nifty Bank reclaims 47,000

For the week, the Sensex gained 0.8 percent and the Nifty added 0.5 percent.

However, market ignored 15-month weak core sector data for January and widened fiscal deficit at Rs 11.03 lakh crore.

Also Read - Nifty hits all-time high, Sensex zooms 1,000 points; 5 factors fuelling the rally

The biggest Nifty gainers were Tata Steel, L&T, JSW Steel, Titan Company and IndusInd Bank, while losers were Dr Reddy's Laboratories, Sun Pharma, HCL Technologies, Infosys and Britannia Industries.

Among sectors, the metal index was up 4 percent, while auto, bank, capital good and oil & gas were up 2 percent each.

The healthcare index was down 1 percent and Information Technology index 0.5 percent.

BSE midcap and smallcap indices added 0.5 percent each.

The Nifty Bank index also surged 2.5 percent or 1,166 points to close at 47,286.90 mark with IndusInd Bank, ICICI Bank and SBI rising 3 percent each.

A long build-up was seen in SAIL, Tata Steel and Jindal Steel, while a short build-up was seen in ICICI Lombard General Insurance Company, Zee Entertainment Enterprises and DR Reddy's Laboratories.

More than 200 stocks touched their 52-week high on the BSE including Action Construction, BF Investment, Castrol India, Genesys International, Grasim Industries, ICICI Bank, Indus Towers, Jindal Steel, Kalyani Steels, Kellton Technologies, M&M, Rico Auto, Swaraj Engines, Tata Investment Corporation, Tata Motors, Tata Motors DVR, Tata Steel, Themis Medicare, Torrent Pharma, TVS Motor, among others. Click here for the full list

Outlook for March 4

Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas

The Nifty opened gap up and continued to inch higher throughout the day to close with gains of ~356 points. On the daily charts we can observe that the Nifty has broken out of a Running Triangle pattern indicating start of a fresh leg of upmove. The daily Bollinger bands have begun to expand and with prices trading along the upper band indicates that there could be sharp trending moves on the upside. We expect Nifty to target levels of 23000 – 23100 from short term perspective. On the downside the zone of 21900 – 21860 shall now act as a crucial support zone and a breach below it shall lead to a trend reversal.

Bank Nifty has held on to the support zone of 45800 – 45600 and started the next leg of upmove which can take the Bank Nifty towards the zone of 48630 – 48660. Bank Nifty is likely to take the lad and support the next leg of the upmove. Participation from key Heavyweights is likely to aid the upmove

Ajit Mishra, SVP - Technical Research, Religare Broking

Markets surged strongly on Friday and reclaimed the record high. After the initial uptick, Nifty moved from strength to strength as the day progressed and finally settled around the day’s high to close at 22,338.75; up by 1.6%. The majority of sectors contributed to the move wherein metal, banking and auto posted strong gains. However, the broader indices underperformed the benchmark but managed to end with modest gains.

We are eyeing 22,800 in Nifty now thus participants should continue with a “buy on dips” approach until it breaks 21,900. We feel the participation of the banking pack would continue to play a critical role in maintaining the prevailing momentum while others may play a supportive part on a rotational basis. Traders should maintain stock-specific approach and prefer index majors and large midcap counters for long trades.

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