Feb 21, 2024
Market Outlook: Nifty, Sensex end mild in green; to remain muted on fears of hawkish US Fed, global volatility
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%).
Markets Ahead: US inflation data spikes fears
Midcap index rises more than Nifty 50: Deepak Jasani, HDFC Securities
Recovery in IT helps Nifty close in green: Vinod Nair, Geojit Financial Services
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.
Nifty Technical View: Nifty formed bullish candle
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.’
Bullish reversal of price trend suggested: Rupak De, LKP Securities
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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