Indian stock markets today extended the Budget rally to the sixth straight day with to close at record highs. Strong corporate earnings and positive global cues drove broad-based gains. The NSE Nifty 50 index ended 1.28% higher at 15,115.80, while the S&P BSE Sensex closed over 600 points higher at 51,348.77. In six days, Sensex has logged gains of over 5,000 points.
Among the Sensex stocks, M&M (up 7%) was the biggest gainer while Bajaj Finserv, Bharti Airtel, Infosys, ICICI Bank, AXis Bank, TCS and RIL gained between 1.5% and 3%.
Among individual stocks, State Bank of India gained for a sixth straight session following better-than-expected quarterly results. The market breadth remained strong with BSE midcap and smallcap indices closing about 1.5% higher each.
World shares hit a record high today while oil surpassed $60 a barrel for the first time in a year, on hopes that a $1.9 trillion COVID-19 aid package will be passed by US lawmakers as soon as this month.
Here is what analysts said on today’s market rally:
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
The market has established one more bullish candlestick formation on a daily chart. However, it has left unfilled an exhaustion gap that would invite short term weakness if the Nifty/Sensex breaks below the level of 15040/51140. On the higher side, hurdles would be at 15190/51500 and at 15270/51750 levels. The strategy should be to take profit on long positions between 15150 and 15250 (51500/51750 for the Sensex). Expect a short-term weakness below the level of 15040/51140 levels. Supports would be at 15040/51140 and at 14850/50500 levels.”
Ajit Mishra, VP – Research, Religare Broking Ltd
“On the sector front, except FMCG, all the other indices ended in green wherein Auto, Metal and Consumer Durables were the top gainers. We are eyeing 15,200 in Nifty and going forward, earnings and global cues will dictate the market trend. Market participants would actively track key macro data like IIP, CPI and WPI data.”
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Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
“The markets kept the upward trajectory active all day and moved from strength to greater strength! We should be eyeing the 15200 marks as the next target for the Nifty and if we can sustain there, we could achieve 15500 during the course of February. 14600 is good support for the index and as long as that holds, traders can optimize the risk on their trades by entering positions on dips or intraday corrections.”
Vinod Nair, Head of Research at Geojit Financial Services.
“Strong global cues supported the domestic rally. PSU Banks, which was on a bull run paused today with some correction noticeable in FMCGs. The overall market is maintaining its buoyancy with rally in all sectors especially auto, IT and metals. Improved domestic outlook is encouraging sustained FPI inflows”
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
“Though, Nifty placed at the all time high, there is no indication of any reversal pattern forming at the highs. The market has completely negated bearish reversal pattern of previous week on the weekly chart and closed higher. The underlying trend of Nifty continues to be positive and one may expect further upside in the short term. The next upside levels to be watched around 15500, which is at 1.618% Fibonacci extension (connected from Jan 20 top to March 20 bottom). This could be achieved in the next one week. Immediate support is placed at 14960.”
