Equity benchmarks the Sensex and the Nifty ended higher on February 14, propelled by gains in shares of select heavyweights such as Reliance Industries, ICICI Bank and ITC.
Key indices rose in light of positive global cues ahead of the US inflation data expected later in the day. On February 14, domestic inflation prints came surprisingly higher at 6.52 percent for January, raising fears that the Reserve Bank of India will stay on the course of hiking rates for longer than expected.
Despite elevated inflation prints, market benchmark Sensex opened 118 points higher at 60,550.25 and jumped 671 points to hit an intraday high of 61,102.74.
The index finally closed at 61,032.26 with a gain of 600 points or 0.99 percent. The Nifty50 closed the day at 17,929.85, up 159 points, or 0.89 percent.
The gains, however, were not broad-based as the second-rung indices BSE Midcap (down 0.44 percent) and Smallcap (down 0.61 percent) ended in the red.
Nearly 200 stocks, including Adani Green, Adani Transmission, Adani Total Gas and IPCA Labs, hit their 52-week lows in intraday trade on BSE.
Meanwhile, crude oil prices declined, giving comfort to the rupee.
As per Reuters, crude oil prices fell "after the US government said it would release more crude oil from its Strategic Petroleum Reserve (SPR) as mandated by lawmakers, counter to expectations from some traders that the release could be cancelled or delayed."
The rupee ended 4 paise lower at 82.76 per dollar. The greenback slipped ahead of the US inflation data.
Top Nifty gainers: Shares of UPL, ITC and Reliance Industries ended as the top gainers in the Nifty index.
Top Nifty losers: Shares of Apollo Hospitals, Eicher Motors and SBI Life Insurance Company ended as the top losers in the Nifty index.
Sectoral indices ended mixed. Nifty Realty fell 1.84 percent, ending the day as the top loser. Nifty Auto (down 0.36 percent), Healthcare (down 0.30 percent), Consumer Durables (down 0.18 percent), Pharma (down 0.16 percent) and Media (down 0.16 percent) also ended in the red.
Among the gainers, Nifty PSU Bank (up 1.04 percent), FMCG (up 1.03 percent), Metal (up 1.02 percent), IT (up 0.99 percent), Financial Services (up 0.90 percent) and Bank (up 0.89 percent) clocked healthy gains.
Expert's views on markets
As per Vinod Nair, Head of Research at Geojit Financial Services, domestic indices edged higher, inspired by their global counterparts, as investors await the US inflation numbers today. The whammy over India’s retail inflation breaching the RBI’s tolerance level was cooled by WPI inflation easing to 4.73 percent in January.
Technical views on markets
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas pointed out that Nifty managed to close above the immediate hurdle zone of 17,850 – 17,900 on the daily charts which take the bulls in a position of advantage.
The hourly Bollinger bands have begun to expand, indicating expansion in volatility and prices trading along the upper band suggesting that the positive momentum is likely to continue.
"The daily momentum indicator has a positive crossover which is a buy signal. Thus, both price and momentum indicators are suggesting further upside in the Index. On the upside, we expect the Nifty to test the upper end (18,100) of the downward-sloping channel from a short-term perspective," said Gedia.
Rohan Patil, Technical Analyst at SAMCO Securities pointed out that the open interest (OI) data showed a sharp rise in 17,800 Put OI, suggesting strong commitment by bulls with a reduction at 18,000 Calls.
"The major hurdle for bulls will be faced near 18,000 – 18,050 levels. If prices break above the said levels, then we will be witnessing a breakout in Nifty. Similarly, the closest support for the Nifty is placed near 17,800 – 17,650, and if prices breach these levels, then 17,500 will be on the cards," said Patil.
Key market data
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of MintGenie.