Technical View: Nifty at 1-month high, may face resistance at 24,000

Market Today

The Nifty50 index erased previous session losses and ended higher on February 4 with Nifty above 23,700 led by buying across the sectors barring FMCG.

Tracking positive Asian markets, after the Trump administration paused its planned tariffs on Canada and Mexico, the index opened higher above 23500 and extended the gains as the day progress and crosses 23750 intraday, before finishing near the day high at 23,739.25, up 1.62 percent.

On the sectoral front, except FMCG, all other sectoral indices ended in the green with Nifty PSU Bank, Infra, Energy and Oil & Gas up 2 percent each.

Nifty Midcap index added 1.6 percent and Smallcap index rose 1 percent.

Shriram Finance, L&T, Adani Ports, Bharat Electronics, IndusInd Bank were among the biggest gainers on the Nifty, while losers were Trent, Britannia Industries, Hero MotoCorp, Nestle India and Eicher Motors.

"Following strong global trends, Nifty50 opened with a positive start and continued to rise throughout the day, closing at its highest point of the day at 23,739.25 with gains of 378.20 points. All sectors, except FMCG, ended with gains, with PSU Banks and Energy leading the way. The positive momentum was witnessed in the Broader markets also as Mid and Smallcaps surged by 1.56% & 1.09% respectively," said Aditya Gaggar Director of Progressive Shares.

"The Index formed a strong bullish pattern, breaking above the key level of 23,500, which will now serve as a support. The momentum looks set to continue, but it may face resistance at the 24,000 mark," he added.

The Bank Nifty index broke two-day losing streak and ended with nearly 2 percent gain to close above 50,000 mark for the first time since January 7.

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