Here's what drove Nifty to hit an all-time high of 22,215 level; what's next?

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Benchmark indices Nifty and Sensex erased initial losses to trade higher on February 20, supported by banking and media stocks. Nifty also hit an all-time high of 22,215 towards the fag-end of trading session. But, experts believe that a rangebound momentum is likely in the near-term due to absence of immediate triggers and heightened volatility.

Sensex and Nifty settled 0.4 percent higher to 73,057 and 22,209 on February 20. Broader markets, however, saw some profit-booking as Nifty Midcap 100 and Nifty Smallcap 100 indices slipped up to 0.4 percent.

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India VIX, which measures market volatility, remained elevated above 16 level. Sacchitanand Uttekar, Vice-President – Research & Data Analytics TradeBulls Securities, pointed out that unless India VIX broke out of the 14-16 range, one cannot see any directional move in benchmark Nifty.

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, also warned investors that sharp corrections can happen any time as volatility is expected to remain high in the near-term.

Going ahead, Nifty can reach 22,400-600 level if banking sector chips in, said Sameet Chavan, Head Research, Technical and Derivative - Angel One. "If it fails to do so, we may either see a consolidation in benchmark and stock-specific movement would continue, or else it would be difficult for the bulls to maintain their dominance," he added.

Meanwhile, here are some of the top factors that led to Nifty's record high on February 20.

Bank Nifty crossed 47,000-mark led by private lenders HDFC Bank, Axis Bank

Sectorally, Bank Nifty index gained over a percent to cross 47,000-mark on February 20 led by HDFC Bank, Axis Bank, and Kotak Mahindra Bank. Mayuresh Joshi, Head- Equity Research India, William O’Neil believes that any structural price damage for HDFC Bank and Kotak Bank despite their recent decline in stock prices.

"Market anticipates n earnings recovery to begin in the first half of the next financial year, with the second half expected to be relatively better. HDFC Bank is expected to prioritise maintaining a strong balance sheet over chasing risky advances, contributing to a more stable growth outlook," he told Moneycontrol.

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HDFC Bank's gains also follows bullish calls from global brokerage firms Citi and Morgan Stanley, which forecast over 40 percent upside from current levels.

Apart from banks, media and realty stocks also fared well on February 20 trading session, while IT and automobile shares saw some profit-booking.

US 10-year & 2-year bond yields fall as markets reopen

The US treasury yields fell on February 20 as markets resumed trading activity after President's holiday. The 10-year US treasury yields fell nearly 1 basis points (bps) to 4.27 percent, while 2-year treasury yields lost 4 bps to 4.6 percent.

Rupee strengthens against US dollar due to cooling oil prices

The domestic currency ended marginally higher at 82.97 per dollar on February 20, as against last close of 83.01 due to minor correction in crude oil prices and financial sector's uptrend.

Going ahead, Jateen Trivedi, VP Research Analyst, LKP Securities expects rupee to remain rangebound within the range of 82.80-83.15 per dollar.

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