15 Feb , 2023 By : Monika Singh
Indian equity indices concluded Wednesday’s muted session in green. The Sensex closed above 61,250 and the Nifty settled above 18,000. The top gainers of the Sensex were Tech Mahindra (up 5.79%), Reliance Industries Ltd (up 2.22%), Bajaj Finserv (up 1.44%), Bharti Airtel (up 1.24%) and Mahindra & Mahindra (up 1.19%).
Midcap index rose more than the Nifty even as the advance decline ratio improved to 1.23:1. Indian markets were the star performers in the Asian region where most markets ended in the red. Asian stocks were mostly down but European markets recovered from the initial weakness on Wednesday after US inflation edged down less than expected, fueling concern the Federal Reserve might think more interest rate hikes are needed. UK CPI data showed inflation fell for the third month in a row in January to hit 10.1%, according to the Office for National Statistics
The US inflation, though it slowed down compared to the previous month, came in higher than expected at 6.4% YoY. Higher inflation, combined with a strong labour market, has raised concerns that the Fed will remain hawkish for an extended period. Despite a sluggish start in the domestic market, recovery in the IT and auto sectors contributed to a positive finish. A reversal in the FII pattern to net buying has also helped maintain optimism in the domestic market.
17,900 key support zone: Shrikant Chouhan, Kotak Securities
Technically, post the 17,900 breakout the market is comfortably trading above 17,850, which is largely positive. The Nifty has also formed a bullish candle and a higher bottom formation on intraday charts which supports further uptrend from the current levels. For the trend following traders, 17,900 would act as a key support zone, above which the index could move up to 18,100-18,150. On the flip side, below 17,900, bulls may prefer to exit out from the trading long position.’
Nifty has given a falling channel breakout on the daily timeframe, suggesting a bullish reversal of the price trend. The trend looks positive now for the near term, with the 14 DMA sitting below price. The momentum indicator RSI is in support of the price trend, with a current reading above 50. Over the near term, the index may move up towards 18,350–18,400. On the lower end, support is placed at 17,950.
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