BackNifty's record run continues, courtesy SBI. Analysts eye 15,200 levels
SBI beat quarterly profit estimates and helped the bank index reverse lossesITC, Kotak Bank and Bajaj Finance posted strong gains
PremiumIndia's stock indexes Senex and Nifty closed at record highs, extending the Budget rally to four sessions. The NSE Nifty 50 index rose 0.7% to 14,895 while the benchmark S&P BSE Sensex gained 358 points to 50,614. Sensex has now risen 4,328 points in just four sessions. Broader markets also were strong. BSE midcap and smallcap indices rose 1.4% and 1.2% respectively.
Investors are also waiting for the Reserve Bank's monetary policy decision when rates are expected to be held at record lows.
The Nifty Bank index, which had slipped as much as 1.5% intraday, closed 1.7% higher and drew support from a 6.6% surge in shares of SBI. The country's largest lender beat quarterly profit estimates as its retail lending growth recovered to pre-pandemic levels.
Shares of motorcycle maker Hero MotoCorp rose 1.8%, while the benchmark auto index gained 1.1%. Cigarette maker ITC Ltd advanced 6.1% as the top percentage gainer among the Sensex stocks. Among other top gainers, Kotak Bank, Bajaj Finance, ONGC and M&M rose between 3% and 5%.
Here is what analysts said on today's market performance:
Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel Broking):
“The markets then continued its momentum to end the weekly expiry around 14900. The banking index continued its outperformance and the broader markets too saw good momentum. As of now, the momentum continues to be bullish as even minor intraday dips are getting bought into. Hence, traders are advised to continue to trade with a positive bias and look for stock specific opportunities. As far as levels are concerned, Nifty has ended near the rising trendline at 14900 and a continuation of this upmove should lead the index towards 15070. On the flipside, the immediate supports for Nifty are placed around 14770 and 14640."
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
"Characterized by low volumes, the movement of the index was rather tepid in the first half of trade today. Post 12 noon we saw some strength coming in which pushed the Nifty higher to cross 14900 intraday. We are still in a position to expect 15000-15100 on the index and hence any dip or intraday correction can be utilized to enter the markets."
Ajit Mishra, VP - Research, Religare Broking Ltd
"Jubilation continues for the fourth successive session as the benchmark gained over half a percent amid volatility. Next, the outcome of the MPC’s monetary policy review meeting, which is scheduled for Feb 5, will be closely watched by the participants. The majority expect status quo on interest rates but the commentary on inflation and economic outlook would hold importance. Amid all, we reiterate our view to focus on the selection of stocks and continuing with the “buy on dips" approach. Nifty has the potential to test 15,200 zone ahead."
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