Following the Union Budget announcement, the domestic market witnessed a lot of volatility today, Monday (February 2), before a strong rally towards the end of the trading session. Both Sensex and Nifty closed up 1%, hitting their highest levels of the day. Bank Nifty remained mostly flat throughout the day, but recovered before the close. Sensex closed 943 points up at 81,666, Nifty closed 262 points up at 25,088 and Bank Nifty closed 201 points up at 58,619. In the currency market, the rupee weakened by 8 paise to close at 97.07/$ against the dollar.
In today’s trading, mid-cap stocks led the market, while small-cap stocks witnessed limited gains. Nifty Mid Select index closed 236 points higher at 13257, a gain of 1.82%. Nifty Smallcap index closed 105 points higher at 16523, registering a gain of 0.64%.
Which stocks rose and which fell in Nifty 50?
Tata Motors PV gained nearly 5%, reflecting renewed confidence in demand in the auto sector. Adani Ports gained about 3.9%. Tata Consumer Products gained about 3.1%, and Reliance Industries gained about 3%. Profit-booking was also seen in some large-cap stocks. Axis Bank declined by about 2.5%, indicating mild weakness in the banking sector. Max Healthcare declined 2.3%. Cipla and Infosys both fell around 1.9%, putting pressure on pharma and IT sectors.
Strong recovery in many stocks
Today many stocks made strong recovery from their lows. MCX gained about 8.5% due to improvement in trading activity. MRPL gained nearly 8%, and Hindustan Zinc showed strength with a gain of nearly 6.4%. Sundaram Finance also gained about 7.5%. This suggests that investors used the decline as a buying opportunity.
Important activities in power sector
Today special attention was paid to power stocks. Power Grid gained about 7.4%, giving a boost to state utility stocks. Vari Energies gained about 5.3% and Adani Energy gained about 4%. There was a lot of movement in the result stocks also. Latent View Analytics jumped nearly 9.8%. Campus Activewear gained about 6.2%. On the other hand, Hyundai Motor declined by about 4.4% and Shriram Finance declined by about 4.2%.
Today’s Top Gainer-Loser
In today’s trading, Sharda Cropchem gained about 10.8% and was one of the strongest stocks. Garware Hi-Tech Films gained nearly 10%. MRPL rose by about 8.3% and Godrej Agrovet by about 7.5%. On the other hand, there was heavy pressure on some stocks. Cartrade Tech declined about 6.4%. Gokaldas Exports declined by about 6.3% and Intellect Design by about 6.1%. MOIL Ltd also slipped around 5.9%.
Anil Singhvi’s Editor’s Take:
What is the reason for recovery?
– Markets were oversold yesterday after the budget
– Nifty PCR fell to 0.58
– I said in the morning that a good recovery will definitely come.
– Despite considerable weakness in gold, silver, metal and global markets, recovery is excellent
– Perhaps FIIs are not that negative about the budget
Which levels are important now? – Nifty has strong support at 24675-24800
– This morning a buy advice was given for Nifty in the range of 24575-24700, and it reversed after taking support there.
– Bank Nifty has strong support at 57825-58125
– Today a buy advice was given for Bank Nifty in the range of 57950-58125, and it reversed from there.
– Nifty 25000-25150, Bank Nifty 58500-58800 are upper ranges. If Nifty closes below 24800 and Bank Nifty closes below 58400, then weakness will increase.
– If Nifty closes above 25000 and Bank Nifty closes above 58800 then the fall will stop.
Stock in Action:
Adani Ports:
The budget is good for infrastructure and construction companies.
– Buying advice was given in ‘Stock of the Day’ this morning.
L&T:
The budget is good for infrastructure and construction companies.
– Buying advice was given in ‘Stock of the Day’ this morning.
Shriram Finn:
Today NBFC shares are weak.
– This stock was mentioned in ‘Opening Zero’ this morning.
Bharat Dynamics:
– Very weak results were declared on Friday.
– This stock was mentioned on ‘Today’s Heroes’ this morning.
