Stock market today: Nifty 50 hits record high, crosses 22k for first time ever

The domestic market witnessed significant volatility on Tuesday, with the Nifty 50 swinging 170 points during the session.

The Nifty 50 finally closed 75 points, or 0.34 per cent, higher at 22,196.95. This was the sixth consecutive session of gains for the benchmark index. In these six sessions of gains, Nifty 50 has jumped nearly 3 per cent. 

Sensex closed 0.48 per cent higher at 73,057.40. Gains in select banking heavyweights, including HDFC Bank, Axis Bank, Kotak Mahindra Bank and ICICI Bank, helped market benchmarks end in positive territory on Tuesday.

However, the BSE Midcap and Smallcap indices underperformed, closing with losses of 0.17 per cent and 0.18 per cent, respectively.

Over 330 stocks, including NTPC, ONGC, Apollo Hospitals Enterprises, Cipla, Dr Reddy’s Labs, Grasim Industries, Indian Hotels Company and Zomato, hit their fresh 52-week highs in intraday trade.

Top gainers in the Nifty 50 index

As many as 27 stocks closed in the green while 22 stocks ended lower. One stock – LTIMindtree – ended flat.

Shares of Power Grid Corporation (up 4.36 per cent), HDFC Bank (up 2.53 per cent) and Axis Bank (up 2.27 per cent) closed as the top gainers in the Nifty 50 index.

Top Nifty 50 laggards

Shares of Hero MotoCorp (down 3.85 per cent), Bajaj Auto (down 2.58 per cent) and Eicher Motors (down 1.87 per cent) closed as the top loser in the Nifty 50 pack.

Sectoral indices today

With a gain of 2.27 per cent, Nifty Media closed as the top gainer among sectoral indices.

Nifty Bank closed with a strong gain of 1.20 per cent while the Private Bank index rose 1.02 per cent. Nifty PSU Bank index ended flat.

Nifty Financial Services rose 1.23 per cent.

On the other hand, Nifty IT fell 0.87 per cent, followed by Nifty Auto which fell 0.62 per cent.

Experts’ views on markets

“The latest upward trajectory is bolstered by gains in the banking sector, with private banks witnessing a rebound from a recent sharp correction. However, the decline in mid and 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,” said Vinod Nair, Head of Research, Geojit Financial Services.

“Impressive buying in banking stocks propelled benchmark Nifty to touch a new high and close above the 22,000 mark, as the recent sell-off in the financial space had made several banking counters attractive for investors to take renewed exposure. Despite the ongoing conflict in the Red Sea and the Middle East, stable oil prices have helped improve market sentiment. However, the focus will be on Wednesday’s minutes of the US Fed’s last meeting on policy rates, which will provide more clarity on interest rate direction in the near term,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.

Technical views on Nifty 50

Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas observed that the Nifty 50 has decisively closed above the previous resistance zone of 22,100 – 22,150 which indicates that the next leg of upmove has resumed.

“On the upside, we expect the Nifty 50 to target levels of 22,500, which is the upper end of the rising channel. Bollinger bands have begun to expand, and prices are trading along the upper band indicating that the positive price action is likely to continue,” said Gedia.

“The hourly momentum indicator still has a negative crossover, which is a point of worry, however, we shall assign more weightage to the price action and continue to ride the up-move. In terms of levels, 22,460 – 22,500 is the immediate hurdle zone while 22,000 – 21,950 should act as a crucial support zone,” said Gedia.

Rupak De, Senior Technical Analyst, LKP Securities pointed out that the Nifty 50 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 22,200 mark. Support on the lower end is identified at 22,000,” said De.

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Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 20 Feb 2024, 03:28 PM IST