15 Feb , 2024 By : Debdeep Gupta
Mid-day Mood, Sensex, and Nifty trim opening gains as RIL, banks see selling pressure, While the benchmark indices erased early gains, the broader market remained resilient. The market breadth was also heavily titled in favor of gainers as two stocks rose for each one that fell.
Indian benchmark indices, the Nifty 50 and the Sensex, trimmed the opening gains and were hovering near the flatline as of afternoon trade on February 15. The muted trend in the market can be attributed to profit booking in several heavyweight counters like Reliance Industries, Axis Bank, ICICI Bank, and ITC, which were down 1-2 percent.
The market opened higher on the back of upbeat cues across global markets which recovered following the sharp meltdown in the previous session after the US inflation print came hotter-than-expected for January. Following the adverse US inflation data, market participants have set aside hopes of a rate cut from the Federal Reserve in its upcoming March meeting.
Around noon, the Sensex was down 14.60 points or 0.02 percent at 71,808.23, and the Nifty was up 5.00 points or 0.02 percent at 21,845. The market breadth was also heavily tilted in favor of gainers as two stocks rose for each one that fell. About 2,149 shares rose, 1,010 fell, while 62 remained unchanged.
The broader market remained resilient as the BSE Smallcap and Midcap indices were up 1.2 percent and 0.7 percent, respectively.
Fundamental View
"A significant feature of a bull market is its ability to bounce back from a steep fall. This was evident yesterday when Nifty bounced back by around 300 points from the lows. The heavy selling by FIIs, which was expected in response to the spike in US bond yields, didn’t impact the market since it was neutralized by DII and individual investor buying," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
However, Vijayakumar also warned against the valuation gap between large caps and the broader market which according to him continues to be an area of concern.
Technical View
"After a gap-up opening, Nifty can find support at 21,800 followed by 21,750 and 21,700. On the higher side, 21,950 can be immediate resistance, followed by 22,000 and 22,150," said Deven Mehata, research analyst at Choice Broking.
"The charts of Bank Nifty indicate that it may get support at 45,700, followed by 45,550 and 45,400. If the index advances, 46,300 would be the initial key resistance, followed by 46,500 and 46,650," he added.
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