Sensex, Nifty gain led by banking stocks; may consolidate in range until next trigger

Domestic benchmark indices Sensex and Nifty traded on a positive note on February 13 led by banking stocks. As we approach the final phase of corporate earnings season, analysts anticipate Nifty to fluctuate within the range of 21,100 to 22,000 in the short term, as investors seek out the next catalyst for market movement.

Sensex and Nifty rose 0.6 percent each to 71,555 and 21,743, respectively on February 13. Broader markets, too, saw some respite after undergoing selling pressure as Nifty Midcap 100 and Nifty Smallcap 100 indices rose up to 0.3 percent.

India VIX, which measures market volatility cooled off by a percent to hover at 15 level.

Analysts at ICICI Securities expect Nifty to prolong consolidation in 22,000-21,100 range. Thus, buying-on-dips would be a prudent strategy to adopt as strong support is placed at 21,100 zone, they added.

On the other hand, Sacchitanand Uttekar, Vice President – Research at TradeBulls Securities identified this market to be a classic sell-on-rise and suggested investors to create short positions on every pullback.

Bank Nifty surges over 1%, but private lenders performance is key, say experts

Sectorally, Bank Nifty emerged to the winner on February 13 as it rose 1.3 percent to 45,502 led by gains in PNB, ICICI Bank, Axis Bank, and Kotak Mahindra Bank.

However, Ajit Mishra, Senior Vice-President of Technical Research at Religare Broking opined that the Bank Nifty index is likely to remain rangebound until it decisively sustained 46,000-level. "Apart from ICICI Bank, we believe that private sector lenders performance could weigh the index in the near-term. We have placed the support for Bank Nifty around 44,600," he added.

Apart from that, Nifty Healthcare, Consumer Durables and Oil & Gas also performed well on February 13, but Nifty Metal lost the most, over 2 percent.

US inflation figures eyed to map rate cut trajectory

Globally, investors will watch out US inflation figures due later today as it will provide roadmap for interest rate cut trajectory. According to a Reuters poll, CPI inflation may rise to 2.9 percent in January, down from 3.4 percent in the previous month.

Current expectations about central banks reducing interest rates due to falling inflation are influencing markets significantly. Strong job data this month has made a rate cut by the Federal Reserve in March less likely, with May now seen as a more probable timing.

As per CME Fed-watch tool, expectations for Fed to cut rate in March remained steady at 16 percent and prospects of rate cut in May stood at 52.2 percent.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.