Taking Stock: Nifty hits fresh record highs led by banks, finance stocks

Domestic benchmark indices logged their sixth straight day of gains on February 20, with one of them reaching fresh record highs. Banks and financial services saw heavy buying, thereby lifting Sensex and Nifty.

The 30-share flagship Sensex settled 349.24 points or 0.48 percent higher to 73,057.40 and Nifty added 74.70 points or 0.34 percent higher to 22,196.95. Broader markets, however, saw some profit-booking as Nifty Midcap 100 and Nifty Smallcap 100 indices slipped up to 0.6 percent.

"Amidst market volatility, the domestic market is once again poised to approach record highs. The latest upward trajectory is bolstered by gains in the banking sector, with private banks witnessing a rebound from a recent sharp correction," said Vinod Nair, Head of Research, Geojit Financial Services.

"However, the decline in mid & small caps suggests that investors are continuing to exercise caution due to higher valuations. The forthcoming release of the US Fed minutes this week holds significance, particularly in light of recent sticky inflation data, which raises uncertainty regarding the timing of the Federal Reserve's initiation of its easing cycle."

Stocks & Sectors

Sectoral matrix on the NSE was mixed. Nifty Media was the biggest gainer, up 2.27 percent. Nifty Realty, Nifty Bank and Nifty Financial Services followed with gains of over a percent each. Nifty IT and Nifty Auto shed about a percent each.

Among Nifty 50 constituents, Power Grid was the top gainer, adding 4.36 percent. HDFC Bank, Axis Bank, Kotak Mahindra Bank and NTPC were other gainers rising over 2 percent each.

Hero MotoCorp was the top loser in the pack, down 3.85 percent. Bajaj Auto, Eicher Motors, Coal India and Tata Consultancy Services were other losers.

OUTLOOK for Feb 21

Osho Krishan, Sr. Analyst - Technical & Derivative Research, Angel One

The buoyancy in the Banking space led by heavyweights has undoubtedly provided the much-needed thrust for the benchmark index to sustain at higher grounds. A follow-up buying emergence can affirm the trend to continue. Also, the US market would open after a long weekend; hence, a firm watch over the same is advisable, which may navigate the intermediate trend setup for our markets. The undertone remains sanguine; however, a pragmatic approach is prudent at the lifetime high zone.

Rupak De, Senior Technical Analyst, LKP Securities

The Nifty continues its upward momentum following a consolidation breakout on the daily chart. The trend remains robust as it has sustained itself both above the psychological level of 22,000 and the 21EMA on the daily timeframe. On the higher end, it may move towards 22,400/22,600 once the index decisively surpasses the 22200 mark. Support on the lower end is identified at 22,000.

Deven Mehata, Research Analyst, Choice Broking

Index has a support around 22100-22050 zone.  Coming to the OI Data, on the call side, the highest OI observed at 22600 strike prices while on the put side, the highest OI is at 22100 strike price. On the other hand, Bank nifty has support at 46700-46500 while resistance is placed at 47500 and 48000 levels.