Taking Stock: Market extends gains for 3rd day; Nifty above 21,900, Sensex up 228 points

In yet another volatile session, the market ended higher and extended the winning run for the third consecutive session on February 15 with Nifty at 21,900.

Amid positive global cues, Indian equity indices started higher, but erased all gains in the initial hours to trade rangebound in the first half. However, it regained momentum in the second half to close near the day's high levels.

At close, 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 recovered from the day's low of 45,590.20 to end 0.7 percent higher at 46,218.90.

Stocks and sectors

Top gainers on the Nifty included 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 shed 0.9 percent, on the other hand auto, PSU Bank, metal, realty power and oil & gas up 1-2 percent.

BSE Midcap and Smallcap indices were up one percent each.

Among individual stocks, a volume spike of more than 300 percent was seen in Polycab India, Muthoot Finance and PNB.

A long build-up was seen in HPCL, Polycab India, M&M, while a short build-up was seen 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 full list

Outlook for February 16

Mandar Bhojane, Research Analyst at Choice Broking:

Analyzing the daily chart of Nifty, a neutral candlestick with a long wick pattern and substantial volume was observed, indicating uncertainty in the index. If Nifty crosses the 22,000 level, there is potential for it to reach an all-time high in the next few sessions, targeting 22,200-22,300 levels.

The immediate support for Nifty is currently at the 21,800 level. On the upside, resistance levels are identified at 22,000 and 22,100. The overall chart pattern, positive market breadth, and sectoral performance suggest a favorable outlook for the Nifty, indicating the potential for further upward movement.

Rupak De, Senior Technical Analyst, LKP Securities

Nifty exhibited volatility throughout the day but eventually closed above the resistance level of 21,850. According to the daily chart, Nifty has experienced a consolidation breakout, indicating a positive shift in sentiment. Additionally, the index has closed above the 20DMA for the third consecutive session, and the RSI shows a bullish crossover. In the short term, there is a possibility of the index moving towards 22,200. On the downside, support is situated at 21,750.

Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas

The Nifty opened with gains and traded with a positive bias throughout the day. It close with gains of ~71 points. On the daily charts we can observe that after the sharp runup in the previous trading session the is holding on the gains and also minor dips are being bought into suggesting buying interest. The daily momentum indicator has triggered a positive crossover which is a buy signal. Thus, both price and momentum indicator is suggesting continuation of the upmove. On the upside immediate hurdle is placed at the 22100 – 22130 zone while the support zone has shifted higher towards 21770 – 21750.

Bank Nifty has managed to close 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 crossover should provide speed to the upmove. On the upside, Bank Nifty can rally towards 46600 – 47000 from short term perspective.

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