Sensex, Nifty rise on positive global cues; analysts await next trigger for further upside

A broad-based buying propelled benchmark indices the Sensex and the Nifty higher on February 16 amid healthy global cues. Experts, however, foresee range-bound trade for the next few sessions until a clear catalyst emerges.

The Sensex and the Nifty each gained 0.3 percent to trade at 72,261 and 21,984 as volatility eased with the fear gauge India VIX cooling off by a percent to 15 level.

"The trading range remains tightly wound, suggesting traders are awaiting a catalyst for a clear trend. Presently, prices hover around the upper bounds of consolidation, yet lingering apprehension persists, as evident from the lack of robust bullish momentum," said Sameet Chavan, Head of Research, Technical and Derivative - Angel One.

For Nifty, immediate resistance is at 22,100 Chavan said, cautioning against aggressive long positions until a comfortable breach occurs.

Broader markets also participated in the up move despite repeated caution over premium valuations. The Nifty Midcap 100 and Nifty Smallcap 100 indices rose up to 0.7 percent within the first hour of trade.

All sectors traded in a positive territory. Nifty Auto, Media, and Pharma indices led the pack by surging up to 2 percent on February 16 morning trade.

Over the last 2 days, foreign institutional investors (FIIs) have sold equities worth Rs 6,993 crore in the cash market, while domestic institutional investors (DIIs) bought equities worth Rs 5,173 crore.

The trend of FII selling is likely to continue since the 10-year US bond yield is high at 4.24 percent, said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services. "The trend of DII buying, too, is likely to continue since the flows into the DIIs continue to be robust," he added.

Global markets continue to hold gains; investors overlook rate cut jitters

Overnight, the US markets ended higher as investors ignored rate cut prospects. Dow Jones, NASDAQ Composite, and the S&P 500 indices gained up to 0.9 percent.

So far this week, the S&P 500 index up by less than 0.1 percent, while Dow is up 0.3 percent higher, and NASDAQ Composite is down 0.53 percent.

Asian markets also mirrored Wall Street gains as Japan's Nikkei 225 index hit fresh 34-year high by rising over 1.7 percent, whereas Australia's S&P 200 and South Korea's Kospi climbed 0.5 percent each this morning.

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