The Indian stock market continues its record-breaking run for the sixth consecutive day. Sensex is up 618.80 points or 1.22 percent at 51350.43, and the Nifty jumped 182.70 points or 1.22 percent at 15107.
The auto index jumped over 2 percent and is the outperforming sector led by Mahindra & Mahindra which hit a new 52-week high after the auto major reported a massive 39.6 percent year-on-year growth in profit at Rs 530 crore for the quarter ended December 2020.
Goldman Sachs has maintained a buy rating on the stock with a target of Rs 1,029 per share while Nomura has also retained buy on the stock with a target of Rs 1165 per share.
The other auto gainers included Exide Industries, Motherson Sumi Systems, Ashok Leyland and TVS Motor Company.
300 stocks have hit a new 52-week high on BSE included names like Bajaj Electricals, Mahindra & Mahindra, Exide Industries, Dilip Buildcon, Bajaj Finserv, Tata Power, Persistent Systems, Adani Ports, Sun TV Network, Bajaj Finance, HDFC Bank and Emami among others.
Also Read: 5 factors behind the market rally
The rally in the market was broad-based with the midcap and smallcap indices adding over a percent each.
The most active stocks in terms of volumes in BSE included Vodafone Idea, PNB, YES Bank, Suzlon Energy, IRFC, State Bank of India, NCC, Tata Motors, NTPC, Ashok Leyland, DLF, Mahindra & Mahindra and ICICI Bank among others.
“We continue to remain bullish, and the Nifty has the wings to achieve 15,200. A buy on dips strategy would be advisable. There is ample scope for the markets to correct during intraday sessions. These dips can be utilised to make fresh long positions for higher targets. This way the risk-reward trade-off would be favourable,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities is of the view that the underlying short-term trend of Nifty continues to be positive.
Present volatility and consolidation movement could eventually result in an upside breakout in the next few sessions. The next upside levels to be watched at 15,475, which is 1.618 percent Fibonacci extension. Immediate support is placed around 14,800-14,750 levels.
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