Markets rise for the second consecutive day; Nifty crosses 18 thousand; tech mahindra top gainer

It would be strong buying in auto, IT and consumer durables stocks that would keep the bears away from the domestic market. Also, heavyweight Reliance IndustriesThe share price which rose more than 2% for the second day in a row contributed to further gains. Another reason for a positive day would be the continued inflow of foreign funds.

Sensex closed 242.83 points or 0.40% higher at 61,275.09. The Nifty 50 closed at 18,015.85, up 86 points or 0.48%. India’s volatility index dropped 4.4%.

On today’s performance, Ajit Mishra, VP – Technical Research, Religare Broking said,Market It closed higher for the second consecutive session amid mixed signals, rising nearly half a percent. Weakness in global markets weighed on the sentiment in early trade, but resilience in select heavyweights gradually pushed the indices higher. As a result, after three weeks of struggle, the Nifty reclaimed the 18,000 mark. On the sectoral front, IT, auto and realty posted decent gains while remaining on the defensive. Pharma and FMCG business remained weak.

In the broader market, the Midcap and Smallcap indices on BSE recovered their earlier losses and gained 170 points and 100.5 points, respectively.

With respect to sectoral indices, on the BSE, auto index led the rally with gains of over 327 points, followed by IT and consumer durables stocks that gained 288 points and 266 points. Bankex rose 105 points. FMCGThere was slight selling pressure in capital goods and power stocks.

Tech Mahindra’s share price was the biggest winner on Wednesday, skyrocketing nearly 6%. Heavyweights Reliance Industries along with Bajaj Finserv, Bharti Airtel, M&M and Tata Steel also lifted the broader markets with gains of 1-2% each.

Top bears on Sensex were HUL, ITC, Sun Pharma and L&T.

Vinod Nair, Head of Research, Geojit Financial Services, said, “Despite a sluggish opening in the domestic market, recovery in the IT and auto sectors contributed to a positive end to the domestic market.”

Meanwhile, foreign institutional investors (FIIs) remained net buyers for the fourth day in a row. Although the pace of shopping was slow on Wednesday 432.15 cr in Indian equities compared to Tuesday’s numbers 1,305.30 crores. FII inflow was 1,322.39 crore on 13 February and 1,458.02 crore on 10 February.

Besides, at the interbank forex market, the Indian rupee touched a one-month low tracking its Asian counterpart following US inflation data. The local unit closed at 82.8025 against the US dollar on Wednesday as compared to the previous session’s close of 82.7550 per dollar. During the trading session, the rupee weakened to 82.8975 per dollar, its lowest level since January 4.

Although US inflation eased slightly to 6.4% in January 2022 from the previous month, it was still higher than the Street’s expectations of 6.2%. This has raised concerns about more rate hikes by the Federal Reserve. It needs to be noted that the latest US inflation print is still the lowest reading since October 2021.

According to Nair, US inflation, though it slowed down over the previous month, came in higher than expected at 6.4% YoY. High inflation combined with a strong labor market has raised concerns that the Fed will remain dovish for an extended period.

Going forward, Mishra said, “We reiterate our positive outlook on the market, however intermediate consolidation/profit-taking on the global front and limited participation within index heavyweights may restrict the momentum. Thus we recommend to remain selective and look for counters.” Advise on prioritizing risk. Those leading from the front.”

On the 50-scrip benchmark, Rohan Shah, technical analyst at Stoxbox said, on the daily chart Nifty formed a higher higher positive candle and the upper trend line closed above the channel indicating a channel breakout. Intraday traders can look for long opportunities if the market opens on the positive side tomorrow and the price sustains above today’s high of 18,034 for an intraday long target of 18,122. Traders may avoid short trading in the index for tomorrow.

Disclaimer: The views and recommendations given above are of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.