The Budget rally continued on February 2 and the market extended the winning momentum for the third straight session. The Nifty comfortably closed above the 17,700 mark.
The market opened gap-up and remained positive throughout the session to end near the day's high level, supported by the IT, pharma, realty and financial names.
At close, the Sensex was up 695.76 points or 1.18 percent at 59,558.33, and the Nifty was up 203.20 points or 1.16 percent at 17,780.
"The domestic market continued its bull ride tracking budget cues and positive sentiments from global markets. Most sectors remained green while banking and finance stocks contributed most to the gain," said Vinod Nair, Head of Research at Geojit Financial Services.
"Global markets added its gain as strong earnings numbers helped investors digest geopolitical worries. Besides corporate numbers, investors are also awaiting the outcome of OPEC+ meeting and Eurozone inflation numbers for January," he added.
IndusInd Bank, Bajaj Finserv, HCL Technologies, Bajaj Finance and HDFC Life were the top Nifty gainers, while losers included Tech Mahindra, Britannia Industries, UltraTech Cement, Hero MotoCorp and Nestle India.
On the sectoral front, Nifty bank index gained 2 percent and Nifty PSU Bank index added 3.4 percent, while metal, IT, pharma, FMCG indices up 1 percent each.
The broader indices performed in-line with main indices with BSE midcap and smallcap indices rose 1 percent and 1.5 percent, respectively.
Stocks and sectors
On the BSE all the sectoral indices ended in the green with bankex, healthcare, realty, FMCG, and IT indices rose 1-2 percent.
A long build-up was seen in Dr. Lal PathLabs, Vodafone Idea, Can Fin Homes, while a short build-up was seen in Jubilant Foodworks, Chambal Fertilisers and Chemicals and Balkrishna Industries.
Among individual stocks, a volume spike of more than 100 percent was seen in Intellect Design Arena, Jubilant Foodworks and Cummins India.
More than 150 stocks, including Bank of Baroda, Sun Pharma Advanced Research Company, Gravita India, OnMobile Global, hit a 52-week high on the BSE.
Technical View
The Nifty formed a bullish candle on daily scale and has been forming higher highs from the last four sessions.
"Now it has to hold above 17,777 zones, for an upmove towards 17,900 and 18,150 zones, whereas support exists at 17,650 and 17,500 zones," said Chandan Taparia, analyst-derivatives, Motilal Oswal Financial Services.
Outlook for February 3
Ajit Mishra, VP - Research, Religare Broking:
Markets are currently riding high on the back of optimism post the Union Budget. Besides, global recovery and favourable earnings are also adding to the positivity. Amid all, one shouldn’t forget that the Nifty index is still in a trading range and 18,000-18,300 would continue to act as a hurdle.
We feel participants should focus on identifying the sectors and themes which are trading in sync with the index. Among the sectors, banking and financials have the potential to outshine others.
Rupak De, Senior Technical Analyst at LKP Securities:
Going forward, the Nifty needs to sustain above 17,775-17,800 to witness further rally toward 18,000 and higher over the short term. On the lower end support is seen at 17,700, below which the index may consolidate over the near term.
Ruchit Jain, Lead Research, 5paisa.com:
If the markets sustain above 17,800, then the index could approach 18,000-18,050 zone in the near term. The Banking space, as expected, is showing outperformance and is leading the momentum on the higher side. Hence, we continue with our optimistic stance on the index and continue with our advice to trade with a positive bias and look for buying opportunities in intraday declines.
The immediate support for Nifty is now placed in the range of 17,675-17,600.
Disclaimer: The views and investment tips expressed by 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.Taking Stock | Budget rally continues for second day; Nifty above 17,700; Sensex gains 695 points - Moneycontrol.com
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