However, the sentiment remained positive for the short term as the index closed above the crucial resistance level of 22,200, with the next resistance seen at 22,400. Short-term support is positioned at 21,900. As long as Nifty maintains levels above 21,900, the index may continue to be considered a buy on dips, said Rupak De, Senior Technical Analyst, LKP Securities.
In today’s session, 10 out of the 50 constituents of the index achieved new record highs. These included Mahindra & Mahindra, Sun Pharmaceutical Industries, ICICI Bank, Maruti Suzuki India, Reliance Industries, Dr Reddy’s Laboratories, Cipla, SBI Life Insurance Company, Adani Ports & Special Economic Zone, and HCL Technologies.
In terms of sector-specific performance, Nifty Media jumped by 1.36%, followed by Nifty Realty, Nifty Consumer Durable, Nifty Pharma, and Nifty Auto, which closed with gains ranging between 0.18% and 1%. On the flip side, Nifty PSU Bank experienced a decline of 1.15%, while Nifty Oil and Gas and Nifty Metal fell by 0.43% and 0.27%, respectively.
Commenting on today’s market performance, Vinod Nair, Head of Research, at Geojit Financial Services, said, “The domestic market paused momentarily today after reaching another record high earlier in the day, driven by positive signals from global markets. Notably, the capital goods and industrial sectors showed strength, supported by advancements in manufacturing and services.”
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“As the earnings season winds down, the market is eagerly awaiting new catalysts however rallying on the pre-election momentum. Concerns linger over rising crude oil prices, surging US bond yields, and stretched valuations, likely prompting continued selling by FIIs,” he added.
Overall, the Nifty 50 concluded this week with a gain of 0.78%, following a 1.19% increase in the previous week. So far this month, the index has accumulated a gain of 2.24%, contrasting with a flat performance in January.
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Despite foreign institutional investors (FIIs) being net sellers, the market exhibited robust resilience, largely buoyed by significant support from domestic institutional investors (DIIs), which remains the primary driver behind the ongoing market rally.
Looking ahead, analysts maintain an optimistic outlook that the strong performance of the economy and the improving corporate earnings serve as solid fundamental pillars supporting the market.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 23 Feb 2024, 05:23 PM IST