Nifty Soars, Sensex Rises: Market Rally Spans Third Day, Up 228 Points.

Nifty Soars

The Nifty Bank index rebounded from the day’s low of 45,590.20 to conclude 0.7 percent higher at 46,218.90.

In yet another tumultuous session, the market closed higher and extended the winning streak for the third straight session on February 15 with Nifty at 21,900.

Amid favorable global signals, Indian market indexes opened higher, but lost all gains in the early hours to trade rangebound in the first half. However, it recovered pace in the second half to close around the day’s high levels.

At closure, the Sensex was up 227.55 points or 0.32 percent at 72,050.38, and the Nifty was up 70.70 points or 0.32 percent at 21,910.75.

The Nifty Bank index rebounded from the day’s low of 45,590.20 to conclude 0.7 percent higher at 46,218.90.

Top gainers on the Nifty were M&M, BPCL, ONGC, NTPC and Power Grid Corporation, while top losers were Axis Bank, Apollo Hospitals, ITC, HUL and Nestle India.

On the sectoral front, FMCG index fell 0.9 percent, on the other hand auto, PSU Bank, metal, realty power and oil & gas climbed 1-2 percent.

BSE Midcap and Smallcap indexes were up one percent apiece.

Among individual equities, a volume rise of more than 300 percent was witnessed in Polycab India, Muthoot Finance and PNB.

A long build-up was noticed in HPCL, Polycab India, M&M, whereas a brief build-up was noted in Vedanta, Muthoot Finance and Shree Cement.

More than 300 stocks touched their 52-week high on the BSE, including MRPL, Aegis Logistics, Aster DM Health, BCL Industries, Canara Bank, Colgate Palmolive, Cummins India, Force Motors, Gujarat Pipavav, HPCL, Kalyan Jeweller, M&M, MRPL, NMDC, Oil India, Rategain Travel, Tips Industries, Torrent Power, TVS Motor, among others. Click here for the complete list

Outlook for February 16

Analyzing the daily chart of Nifty, a neutral candlestick with a lengthy wick pattern and high volume was seen, indicating uncertainty in the index. If Nifty crosses the 22,000 barrier, there is possibility for it to attain an all-time high in the following few sessions, targeting 22,200-22,300 levels.

The immediate support for Nifty is now at the 21,800 level. On the upside, resistance levels are highlighted around 22,000 and 22,100. The overall chart pattern, strong market breadth, and sectoral performance offer a healthy prognosis for the Nifty, indicating the possibility for additional higher rise.

Nifty experienced volatility throughout the day but ultimately finished above the resistance level of 21,850. According to the daily chart, Nifty has achieved a consolidation breakout, indicating a favorable shift in mood. Additionally, the index has closed above the 20DMA for the third straight session, and the RSI suggests a positive crossing. In the immediate term, there is a probability of the index going towards 22,200. On the downside, support is positioned at 21,750.

The Nifty started with gains and moved with a bullish bias throughout the day. It close with gains of ~71 points. On the daily charts we can note that after the significant runup in the previous trading session the is holding on the gains and also modest dips are being purchased into suggesting buying activity. The daily momentum indicator has generated a positive crossing which is a buy signal. Thus, both price and momentum indicator is signaling continuation of the upmove. On the upside immediate obstacle is put at the 22100 – 22130 zone while the support zone has climbed higher around 21770 – 21750.

Bank Nifty has managed to finish above the 20 and 40-day moving averages (45597 & 46084), which is a sign of strength and with the daily momentum indicator having a positive crossing could lend pace to the upmove. On the upside, Bank Nifty might climb around 46600 – 47000 from short term viewpoint.

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