The S&P BSE Sensex, which has rallied more than 12 percent since the Budget, went past 52,000 for the first time on February 15 to hit a new high of 52,235, while the Nifty50 also hit another life high of 15,340.
The Sensex rose 609 points to 52,154, while the Nifty50 rose 151 points to close at 15,314.
Sectorally, action was seen in banks, finance, realty, telecom, capital goods, and healthcare, while some profit booking was seen in IT, consumer durables, metals, and oil & gas stocks.
On the broader markets front, the S&P BSE midcap index rose 1.4 percent, while the smallcap index closed with gains of 0.37 percent.
“Markets started the week on a robust note and made a new record high, largely led by firm global cues and encouraging domestic macro-economic data,” Ajit Mishra, VP-Research, Religare Broking Ltd told Moneycontrol.
“Markets have resumed the trend after a week-long consolidation phase and we are now eyeing 15,500 in Nifty. With no major events, participants should keep a close watch on global markets for cues. Also, maintain focus on the selection of stocks and avoid a contrarian approach,” he said.
Here is what experts say investors should do on February 16:
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities
The market made a good start to the week on the back of strong and positive domestic flows. The increase in the IIP number and the easing of CPI inflation led to a recovery in financials.
The Bank Nifty rose 1,300 points, finance Nifty 900 points and the Nifty 50 rose to 1,5340. The Sensex, too, gained more than 500 points. It has proven to be the smartest rally after four days of aggregation.
Based on the daily chart, the Nifty and the Sensex are moving towards 15,500 and52,500 levels, with minor resistance at 15,360 and52,250 and on the downside, 15,270 and 51,850 and 15,100 and51,200 would be the big supports.
Our strategy is to reduce weak long positions and we need to make partial profits in positions where there are abnormal gains. Along with financial, the focus should also be on auto stocks.
Rohit Singre, Senior Technical Analyst, LKP Securities
The index started the day with a good gap and managed to hold the gains throughout the session and ended the day at 15,314 with gains of one percent.
Both the Nifty and the Nifty Bank witnessed a fresh breakout, which indicates that the overall structure is still buying on the dip and we may see more upside in the near term if the Nifty manages to hold above 15,250 and the Nifty Bank 37,000, which is immediate and strong support on the downside.
Vinod Nair, Head of Research at Geojit Financial Services.
Optimistic global sentiment and improving corporate earnings are leading an uptrend in the market, dictated by banking and realty stocks. Mild consolidation is noticed in pharma and IT but midcaps continue to beat the broader market.
WPI inflation soared to 2.03 percent in January compared to 1.22 percent in December, which is positive for the manufacturing sector.
Food inflation dipped, cooling CPI to 4.06 percent in January from 4.59 percent in December 2020. The moderation in inflation is in line with the RBI views, which is positive for the domestic economy.
Binod Modi, Head Strategy at Reliance Securities
India appears to be in a sweet spot as of now led by a number of tailwinds, which should continue to offer sustained corporate earnings rebound.
A sharp improvement in 3QFY21 corporate earnings and visibility of sustaining the momentum led by higher capital expenditures allocated in the Union Budget with bold measures to revive investment and consumption activities augur well for the market in the long run.
However, higher Brent prices and hardening of bond yields across global markets could be a near-term concerns. Similarly, as markets are at an all-time high and are discounting a large portion of an earnings recovery, a broad-based rally may not happen here on and a bottom-up investing approach should be preferred.
In our view, beneficiaries of high capex like Infrastructure, industrials, engineering, building materials, select auto, and banks are likely to outperform markets in the medium term.
Ashis Biswas, Head of Technical Research at CapitalVia Global research Limited
The market witnessed a positive trend on February 15 after a few days of the lacklustre movement. The expected levels of the market are likely to be in the range of 15250 and 15470 and it’s going to be crucial for the short-term market scenario to sustain above the 15,250 Nifty50 index level.
The momentum indicators like RSI and MACD support the upside move.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The short-term trend for the Nifty continues to be positive. Today’s upside breakout attempt of the range of 15,255 could open more upside in the short term.
The next upside levels to be watched are around 15,500 in the next few sessions. Immediate support is placed at 15,200.
Disclaimer: The views and investment tips expressed by 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.