Taking Stock | Budget rally continues as benchmark index scales record high

Today's Market

The Budget exuberance continued on the Dalal Street on the third consecutive day on February 3 with benchmark indices hitting record levels, also helped by the positive global cues.

At close, the Sensex was up 458.03 points or 0.92% at 50,255.75, and the Nifty was up 142.10 points or 0.97% at 14,790.

“We have been successful in getting past 14,753.55 which was the previous high recorded by the Nifty. We should now target 15,000-15,100 and given the strong bullish tone, we could achieve this during the course of the February series. While we have good support at 14,200-14,300, a buy on dips strategy would be most appropriate,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.

Except FMCG, all other sectoral indices ended in the green with pharma and PSU Bank indices rose 2 percent each, while auto, bank, metal and energy indices added over 1 percent each.

Broader markets outperformed the main indices with BSE Midcap and Smallcap indices rose over 1 percent each.

IndusInd Bank, Power Grid Corp, Sun Pharma, Dr Reddy’s Labs and Divis Lab were among major gainers on the Nifty, while losers were Shree Cements, UltraTech Cement, Maruti Suzuki, ITC and UPL.

Stocks & sectors

On the BSE, power and healthcare indices rose 2 percent each, while auto, bank, and metal indices added 1 percent each, while some selling seen in the realty stocks.

A volume spike of more than 100 percent was seen in Jubilant Foodworks, Power Grid, and Glenmark Pharma.

Long buildup was seen in Indus Tower, Voltas and ICICI Prudential, while short buildup was seen in Ramco Cements, Godrej Properties and Jubiland FoodWorks.

Over 250 stocks including Siemens, Orchid Pharma and Mahindra and Mahindra hit a fresh 52-week high on the BSE.

Technical View

Nifty formed a formed a Bullish candle on daily scale and continues its higher highs – higher lows formation of the last three sessions.

Now, Nifty has to continue to hold above 14600 zones to continue its bullish momentum towards 14850 and then 15000 zones while support can be seen around 14500 and then 14400 zones” said Chandan Taparia of Motilal Oswal Financial Services.

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