Sensex gains for a third day, Nifty on course to reclaim 22,000-mark

Domestic benchmark indices the Sensex and the Nifty extended gains to a third straight day on February 15 amid a rebound in global markets. If the momentum sustains, the Nifty can retest 22,000-22,100 soon, analysts said.

The Sensex and the Nifty gained up to 0.3 percent to 72,076 and 21,884 in opening deals. Fear gauge the India VIX slipped a percent to 15 level, indicating that volatility is easing up a bit.

“Sustained positive momentum, without significant global escalations, could lead Nifty to retest levels of 22,000-22,100. However, a strong upward trend would require surpassing 22,100 to initiate a fresh upside,” said Sameet Chavan, Head Research, Technical and Derivative – Angel One.

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Deven Mehata, Research Analyst at Choice Broking, too, said that 21,950 can act as an immediate resistance for Nifty for the day followed by 22,000 and 22,150.

Broader markets also fared well in the first hour of trade, with Nifty midcap 100 and Nifty smallcap 100 indices gained up to a percent. However, Chavan of Angel One advised investors to avoid these segments till uncertainty persists.

Sectorally, Bank Nifty saw some profit-booking, declining 0.5 percent followed by FMCG and pharma pockets. On the flipside, Nifty IT gained around 0.4 percent after coming under selling pressure the previous day.

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Global markets rebound; bond yields cool off

Overnight, the US markets edged higher as investors weighed whether Federal Reserve can bring down inflation without de-railing the economy. Dow Jones, NASDAQ Composite, and the S&P 500 indices gained up to a percent.

The 10-year US treasury yields eased by 5 basis points (bps) to 4.2 percent, while 2-year treasury yields were down by 8 bps to 4.5 percent.

One basis point is one-hundredth of a percentage point.

Asia-Pacific markets, too, climbed, with Japan’s Nikkei 225, Australia’s S&P 200, and South Korea’s Kospi surging up to 1 percent.

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