Strong Recovery
Top Nifty gainers were BPCL, HDFC Life, and HCLTech; losers were Power Grid, IndusInd Bank, and Britannia Industries
Indian equity indexes held onto early gains and completed the session near the day’s highs on February 6 as investors shrugged potential US Federal Reserve rate decrease delays.
Despite weak global cues, the market opened higher and extended gains, except for China and Hong Kong, which closed higher.
At closure, the Sensex was up 454.67 points or 0.63 percent at 72,186.09 while the Nifty was up 167.50 points or 0.77 percent at 21,939.20.
Sectors and stocks
BPCL, HDFC Life, TCS, Maruti Suzuki, and HCLTech led the Nifty, while Power Grid, IndusInd Bank, ITC, Bajaj Finserv, and Britannia Industries fell.
Auto, energy, oil and gas, IT, infra, metals, and pharma surged 1-3 percent, while banks and FMCG dipped 0.1 percent apiece.
BSE midcap and smallcap indices outpaced benchmarks and gained almost 1% apiece.
The buildup was long in SAIL, BPCL, Ipca Labs, and Indian Oil Corp, but short in Bandhan Bank, InterGlobe Aviation, and Power Grid.
Several BSE equities reached 52-week highs. Abbott India, Akzo Nobel, Alembic, Anand Rathi, Apollo Tyres, Aster DM, Astra Microwave, Ashoka Buildcon, Bank of Maharashtra, Biocon, Bharat Forge, Bosch, BPCL, Chalet Hotels, Cummins, Dr. Reddy’s, EIH, Ethos, Fino Payments, Fortis Health, Gland Pharma, Genus Power, HCLTech, HDFC AMC, Glenmark Life, Gujarat Gaz.
February 7 forecast
The Nifty 50 index rose 157.70 points to 21,929.40 after a good start. IT and auto led sectors performance with 2.92 percent and 1.59 percent gains, respectively. While Bank Nifty and PSU banking indices corrected, metals remained popular. On the daily chart, the index has created a bullish candle with the downside protected at 21,700. To restart its primary uptrend, it must break 22,100.
The Nifty began positively and moved with a favorable bias, closing up ~165 points. Daily charts show the Nifty trading within the range in an upward sloping channel. The uptrend should continue to 22,000–22,130 unless the recent swing lows of 21,730 are breached.
A bullish crossover of the daily and hourly momentum indicators indicates a purchase signal. Thus, both price and momentum indicator indicate positive momentum, but recent rapid reversals from the upper boundary (22,000) recommend caution on the long side.
Stock-specific action and sector rotation may continue throughout consolidation. Key support is 21,730–21,700, while immediate resistance is 22,100–22,130.
Bank Nifty finished down, but it appears oversold. The hourly chart’s bullish crossing predicts a bank nifty retracement after the latest fall. Bank Nifty should retrace to 46,500–46,800 on the upside. Important index support is 45,370.
| FII Bought | 518.88 Cr |
| DII Sold | 1,188.68 Cr |
Indian Market Stocks
| Sensex | 454.67 | +0.63% | 72,186.09 |
| Nifty 50 | 157.70 | +0.72% | 21,929.40 |
| Bank Nifty | -134.75 | -0.29% | 45,690.80 |
Market Movers
| BPCL | 34.55 6.01% | Power Grid Corp | -8.65 -3.06% |
| HDFC Life | 29.40 5.22% | Britannia | -117.45 -2.29% |
| HCL Tech | 162.70 4.09% | IndusInd Bank | -26.40 -1.72% |
| TCS | 41.25 2.96% | ITC | -6.65 -1.52% |
| Maruti Suzuki | 416.30 3.99% | Kotak Mahindra | -21.35 -1.18% |
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