Taking Stock: Market closes with minor gains after Nifty hits new high

The market closed higher for the fourth straight session on March 4 but off the day’s high on mixed global cues and optimism arising out of blowout Q3 growth.

The Nifty hit a new high of 22,440.90 but pared some of the gains to close 58.65 points, or 0.08 percent, higher at 22,397. The Sensex ended at 73,872.29, up 0.09 percent, or 66.14 points

The broader market was mixed. The BSE midcap rose 0.3 percent, while the smallcap index lost 0.8 percent.

Sectors and stocks

NTPC, HDFC Life, PowerGrid Corp, ONGC and Bharat Petroleum Corp were among the top Nifty gainers. The big losers were Eicher Motors Ltd, JSW Steel, SBI Life, Mahindra & Mahindra, and Britannia Industries.

Among sectoral indices, Nifty oil & gas rose 1.8 percent, while Nifty bank and PSU indices were up 0.3 percent each.

Nifty Media was down 1.9 percent, Nifty IT closed 0.8 percent and FMCG 0.5 percent lower.

Outlook for March 5

Vinod Nair, Head of Research, Geojit Financial Services

The market traded in a range-bound manner due to weak global cues, while investors turned stock-specific due to the prevailing caution on broader indices. Further, the tepid consumption data influenced investors to refrain from FMCG and discretionary stocks.

The global sentiment is likely to be cautious ahead of the Fed chair testimony and ECB policy later this week.

Since inflation is above the target range, the Fed is expected to keep its hawkish stance on interest rates and will be watchful of unemployment and nonfarm payroll data for more cues.

Prashanth Tapse, Senior VP (Research), Mehta Equities

Markets were marginally up on selective buying support and scaled new highs but gains were limited as investors traded with caution after the sharp upsurge in recent sessions.

Investors will closely watch for global cues for directional purposes in the near term.

Kunal Shah, Senior Technical & Derivative Analyst, LKP Securities

The Nifty commenced the week with a consolidated move, resulting in the formation of a Doji candle on the daily chart. The overall sentiment, however, remains bullish. A decisive break above 22,440 is anticipated to intensify the momentum, targeting 22,700 on the upside. On the downside, support is at 22,200.

Shrikant Chouhan, Head Equity Research, Kotak Securities

Technically, the index is witnessing range-bound activity at higher levels, however, the short-term texture of the market is still positive.

The range-bound texture is likely to continue shortly. Buying on intraday correction and selling on rallies would be the ideal strategy for day traders.

For them, 22,350-22,300/74,600-73,400 would act as key support and immediate resistance could be at 22,500-22,550/74,200-74,400. The uptrend would be vulnerable below 22,300/73,400.

Aditya Gaggar, Director, Progressive Shares

On the daily chart, the Nifty has made a Doji candlestick at the record level but considering a strong underlying trend, we believe that the ongoing momentum will extend to 22,600. On the downside, 22,250 will serve as a major support.

Chandan Taparia, Senior Vice President | Analyst-Derivatives, Motilal Oswal Financial Services

The Nifty has to hold above 22,300 for an upmove towards 22,500 then 22,750. Supports are at 22,222 and then 22,100. India’s VIX was down by 0.47 percent from 15.24 to 14.92 levels. Volatility cooled off and paved the way for the bulls in the market.

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