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Taking stock: Sensex, Nifty make a smart recovery as investor confidence returns

The market reacted positively to credit rating agencies reposing faith in Adani group companies, the overnight rally in US stock markets and low-level buying at home

February 03, 2023 / 07:22 PM IST
(Representative image)

(Representative image)

The Nifty rose 243.65 points, or 1.38 percent, to 17,854.05. The Sensex climbed 909.64 points, or 1.52 percent, to 60,841.88.

For the week, the Sensex added 1,510.98 points, or 2.54 percent, to close at 60,841.88 and the Nifty rose 249.65 points, or 1.41 percent, to end at 17,854.

“Markets are rising, assuming that we are in the last phase of the rate hike cycle as indicated by the Fed statement,” said Vinod Nair, Head of Research at Geojit Financial Services.

Investor wealth rose a little over Rs 99,000 crore during the day, BSE data showed.

“Adani Group stocks revived post the confident statement by Total Energies, a large French energy company, raising the sentiment of the market. Pharma stocks have taken a beating as a result of weak third-quarter results.”

Adani stocks make recovery

It was a bitter-sweet day for Adani Group stocks. The flagship Adani Enterprises initially made the worst intraday fall in history – 35 percent – then recovered over 50 percent from the day’s lows to close 1.25 percent higher on BSE. Adani Ports closed up about 8 percent.

Both stocks are also part of the Nifty index.

IndexPricesChangeChange%
Sensex57,925.28-289.31 -0.50%
Nifty 5017,076.90-75.00 -0.44%
Nifty Bank39,616.90-382.15 -0.96%
Nifty 50 17,076.90 -75.00 (-0.44%)
Thu, Mar 23, 2023
Biggest GainerPricesChangeChange%
Hindalco398.806.05 +1.54%
Biggest LoserPricesChangeChange%
SBI512.75-8.80 -1.69%
Best SectorPricesChangeChange%
Nifty FMCG45267.40157.90 +0.35%
Worst SectorPricesChangeChange%
Nifty PSU Bank3643.60-64.70 -1.74%

Adani Power, Adani Total Gas and Adani Wilmar were all locked in 5 percent lower circuit. Adani Transmission and Adani Green Energy hit the 10 percent lower circuit.

The group owned Ambuja Cement climbed 6 percent and ACC 4.4 percent. NDTV, which it acquired recently, was down 5 percent.

Stocks and sectors

Adani Ports, Titan Company, Bajaj Finance, Bajaj Finserv and HDFC Bank were among the top Nifty gainers. Losers included Divis Laboratories, BPCL, Tata Consumer Products, Hindalco Industries and NTPC.

On the sectoral front, Nifty Bank, infra, auto, and PSU Bank indices up 1-3 percent, while energy and pharma indices down 1 percent each.

Broader indices underperform the benchmarks, with BSE midcap index ending flat and smallcap index falling 0.47 percent.

On the BSE, the power index shed 2 percent, healthcare index 0.9 percent, oil and gas nearly 1 percent, while metal and realty were down 0.5 percent each.

The bank index rose 2 percent and auto index 1 percent.

Adani Enterprises, Adani Green Energy, Adani Ports, Adani Transmission, 3I Infotech, Embassy Office Parks REIT, Nahar Spinning Mills, Zee Media Corporation and Relaxo Footwears were among the stocks to slip to a 52-week low on the BSE.

Among individual stocks, a volume spike of more than 200 percent was seen in Divis Laboratories, Zydus Lifesciences and Crompton Greaves Consumer Electrical.

A short build-up was seen in Divis Laboratories, Crompton Greaves Consumer Electrical and Hindustan Copper, while a long build-up was seen in Titan Company, Bank of Baroda and Firstsource Solutions.

Outlook for February 6

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas

The Nifty, in the week gone by, breached its 40 WEMA on an intraweek basis but received support near the lower end of the downward-sloping channel as well as the 200 DMA and recovered thereon.

The recovery picked up momentum on February 3 as the index surpassed the hurdle zone of 17,650-17,700. Consequently, the Nifty is approaching to climb above the 20 DMA & can test the level of 18,000 on the higher side. On the other hand, the near-term support is placed at 17,700 with the major support near 17,350.

Rupak De, Senior Technical Analyst, LKP Securities

On the daily chart, the index has found support at the lower band of the falling channel before moving higher.

In the near term, the index may continue recovering towards 17,950–18,000. On the lower end, support is visible at 17,450.

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

Shubham Raj
Shubham Raj has five years of experience covering capital markets. He primarily writes on stocks with special focus on PMS-AIF industry, telecom and new-age companies. His last stint was with The Economic Times where he wrote on stock markets and led IPO reportage.
first published: Feb 3, 2023 04:11 pm