Informist, Friday, Feb 2, 2024
By Padmini Dhruvaraj
MUMBAI – Domestic benchmark indices are expected to be rangebound with a positive bias next week after experiencing a broad-based rally today, analysts said. The Nifty 50 index is expected to find support at 21600 and face resistance at 22100 points.
“Technically, the market’s medium-term structure is positive, but due to temporary overbought conditions, we may see range-bound activity in the near term,” Amol Athawale, vice president of technical research at Kotak Securities, said in a note.
The market opened on a positive note today, tracking gains in the global stock markets and as investors picked shares of public sector companies after the government announced its Interim Budget on Thursday.
Gains in shares of heavyweight Reliance Industries helped the Nifty 50 hit an all-time high of 22126.80 points. However, due to selling pressure in banking and fast-moving consumer goods stocks, the benchmarks fell off their intraday highs. Eventually, the Nifty 50 ended 156.35 points or 0.7% higher at 21853.80 points and the 30-stock Sensex closed 440.33 points or 0.6% higher at 72085.63 points.
“It turned out to be a roller coaster ride for participants on Friday as the benchmark oscillated sharply on both sides and ended with modest gains,” Ajit Mishra, senior vice president of technical research at Religare Broking Ltd, said.
However, analysts said strong support in banking stocks might take the Nifty 50 to fresh highs next week. The banking index is expected to face resistance at 46600-46800 points and find support at 45500-45200. The Nifty Bank today ended 0.5% lower at 45970.95 points.
“Consistency in the participation from the banking majors is also critical for a steady trend, else the range-bound trend would continue,” Mishra added.
Shares of fast-moving consumer goods companies are expected to rise, Jigar Patel, senior equity manager at Anand Rathi Stock and Share Brokers, said. The Nifty FMCG index is expected to rise to the 58000 points level in the next session and a 500–600-point upside is expected in the next few sessions, he added. The index will bounce back after a massive correction was seen in the sector in the past week, he said. “The metal sector is going to be another sector that can buck the overall profit booking trend that is expected on Monday,” he added.
Investors will assess the Oct-Dec earnings of Tata Motors and UPL, which were released after market hours today. Shares of State Bank of India and Bharti Airtel will also be in focus as the quarterly earnings of these companies are due on Saturday and Monday, respectively.
Shares of Coforge, Mahanagar Gas, Sona BLW Precision Forgings, and Tanla Platforms may fall on Monday as the stocks will trade ex-dividend. End
Edited by Ashish Shirke
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