Another day of record highs: Nifty hits 22,420, Sensex 73,982, as analysts remain bullish

The Sensex also gained and was trading at 73,868.32 at open on March 2. Nifty Midcap 100 and Nifty Smallcap 100 indices were up 0.3 and 0.5 percent each, trading at 16,116.70 and 56,789.

The benchmark Nifty reached a record high of 22,420 on March 2, gaining 0.2 percent, while the Sensex rose to 73,868.32 in a special trading session.

They ended the first session of the day at 10 am with gains of about 0.2 percent, with the Nifty at 22,395, and the Sensex at 77,860.  The next session will begin at 11.30 am.

The Nifty Midcap 150 and Nifty Smallcap 100 indices rose over 0.6 percent to end the first session at 18,083  and 15,159 points.

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While analysts expect low trading volumes in the special session, called to test the exchanges disaster recovery switch, they continue to remain positive on the market.

Devarsh Vakil - Deputy Head Retail Research, HDFC Securities, said, "The short-term trend of the Nifty remains positive and the sharp upside breakout of Friday is expected to continue in the coming sessions. The next upside targets to be watched around 22500-22600 levels."

Vinod Nair, Head of Research at Geojit Financial Services, said that while at the onset of the week investor sentiment appeared cautious, the indices surged on March 1, propelled by stellar Indian GDP figures and a healthy performance of the manufacturing sector as output and new order picked up.

"The release of additional data from the US, such as PMI and payroll data, along with inflation data from China, may influence market dynamics moving forward. Corrections in mid- and small caps are underway and expected to continue, with regulators urging disclosure of associated risks to AMCs," he added.

Also read: Rural consumption improving, set to narrow gap with urban consumption: Morgan Stanley economist

Rohan Shah, Technical Analyst at Religare Broking, advised against taking risk and follow a buy-on-dips strategy. "Any dip on  22,200 can be good buying opportunity and around 23,400 on the higher side," he said.

On March 1, the Nifty closed at an all-time high of  22,339 on the back of a positive response to the GDP numbers.

In a conversation with Moneycontrol, Upasana Chachra, Chief India Economist, Morgan Stanley, said that the trend of India doing well vis-à-vis other developed markets and emerging markets will continue as India's growth is more structural and virtuous in nature in our view.

"I think we will see more broad-based growth recovery into fiscal 25 and growth rates sustaining at these six-plus or six-and-a-half type of levels in the next few years," she added.

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