Heavyweights help Sensex snap 2-day fall; analysts see Nifty at 22,700 in coming weeks

Analysts at ICICI Securities predict that Nifty will gradually advance towards the 22,700 level in the coming month

The Sensex and Nifty bounced back from early losses on February 27 to settle higher, buoyed by gains in heavyweight stocks like TCS, Sun Pharma, Maruti Suzuki, and Hindustan Unilever. Market analysts remain optimistic and expect the Nifty to reach new all-highs in the coming weeks, provided it stays above the 21,990 level.

The Sensex and the Nifty settled up to 0.4 percent higher at 73,095 and 22,193, respectively. Fear gauge, however, remained elevated above 15 level, up by 0.8 percent.

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Analysts at ICICI Securities predict that the Nifty will gradually advance towards the 22,700 level in the coming month, citing a consolidation breakout supported by a rapid retracement. They note that the decline of the past four weeks was retraced within a week, indicating sustained positive momentum driven by favourable global cues, stable bond yields, and a robust base formation in the banking index.

From an investment standpoint, traders are advised to retain long positions on Nifty, implementing a rigorous stop loss of 22,000 on a closing basis, as stock-specific movements are anticipated in the lead-up to the monthly expiry, said Deven Mehata, Research Analyst at Choice Broking.

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That being said, broader markets were mixed on February 27 as Nifty Midcap 100 index declined 0.1 percent, while Nifty Smallcap 100 index gained 0.2 percent.

Sectorally, Nifty Realty emerged as the top performer as it gained over a percent led by Lodha, Sobha, Brigade Enterprises, DLF, and Godrej Properties. On the flipside, Nifty Media index was the top sectoral losers, followed by Nifty PSU Bank and Nifty Oil & Gas indices.

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