Mid-day Mood | Nifty, Sensex inch higher on buying in auto stocks, focus on fundamentals

With the end of Q3 result season, the focus is now shifting to fundamentals and economic macro data

The benchmark Sensex and Nifty indices traded firmly in the green, thanks to buying seen in auto and pharma stocks around mid-day on February 16. The gains were supported by sustained domestic buying, and in line with the rise in Asian peers after fresh US data signalled a cooling economy.

At 11:33am, the Sensex was up 355.09 points or 0.49 percent at 72,405, and the Nifty was up 120.50 points or 0.55 percent to 22,031. About 2,028 shares advanced, 1,136 declined, and 63 traded unchanged.

Except for Nifty Energy, all sectoral indices traded higher. Nifty Auto led the gainers, rising 2.5 percent. Nifty Pharma and Metal indices followed with gains of over 1 percent, while Nifty IT index rose half a percent.

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With the end of the Q3 results season, the focus is now shifting to fundamentals and economic macro data. "Domestic equities are taking support from better-than-expected inflation which would keep the trend positive. Nifty is now close to its all-time high, we expect it to surpass this level and touch new highs," said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services.

"The daily momentum indicator has triggered a positive crossover which is a buy signal. Thus, both price and momentum indicator suggest the continuation of the upmove in Nifty. On the upside, immediate hurdle is placed at the 22,100 – 22,130 zone while the support zone has shifted higher towards 21,770 – 21,750," said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.

"Bank Nifty is above the 20 and 40-day moving averages, which is a sign of strength and with the daily momentum indicator having a positive crossover should provide speed to the upmove. On the upside, Bank Nifty can rally towards 46,600 – 47,000 from a short-term perspective," Gedia said.

M&M, Bajaj Auto, Maruti Suzuki, BPCL and Tata Motors

Powergrid, ONGC, Apollo Hospital, Axis Bank, Britannia

M&M, Maruti, Tata Motors, L&T, Titan Company

Powergrid, Axis Bank, NTPC, ITC, SBI

Mahindra and Mahindra: M&M shares gained nearly 6 percent to Rs 1,865 after the company signed an agreement for Volkswagen components to be used in its electric vehicles.

IPCA Labs: The stock jumped more than 4 percent on analysts' positive outlook after the company's in-line Q3FY24 earnings.

Gujarat Gas: The stock tanked 6 percent to Rs 545 after multiple brokerage firms became pessimistic about the counter following a 40 percent slump in the December-quarter net profit.