After yesterday’s sharp rally, domestic stock markets opened with losses on Wednesday (February 4) due to profit-booking, but the markets traded with mild fluctuations in a narrow range throughout the day. The closing also remained the same. However, Sensex and Nifty managed to close with gains for the third consecutive day. Sensex closed at 83,818, up 79 points. Nifty closed 48 points higher at 25,776. Nifty Bank rose 197 points to close at 60,238. Today the rupee weakened in the currency market and closed at 90.44/$, falling 17 paise against the dollar. Buying continued in mid-cap and small-cap stocks, while heavy selling in the IT sector weighed on the index. Nifty Mid Select closed 66 points, or 0.48% higher, at 13,721, while Nifty Smallcap rose 216 points, or 1.27%, to 17,205.
Big decline in IT sector
The biggest weakness in the market today was seen in the IT sector. Indian IT stocks fell heavily due to pressure on global tech stocks and AI-related fears. Infosys fell about 7.1%. TCS fell by about 6.8%. HCL Tech fell by about 4.5%, while Tech Mahindra saw a decline of about 4%. Selling in IT stocks limited Nifty’s gains.
These shares supported Nifty 50
While the IT sector was under pressure, some big stocks supported the market. Trent gained about 5.7%. Eternal gained about 4.8%. ONGC gained around 4.5%, while NTPC gained around 2.7%. Buying in power and consumption stocks supported the index.
Falling shares in Nifty 50
On the other hand, slight weakness was seen in banking and FMCG shares. Axis Bank declined about 1.2%. ITC declined by about 0.8%. Kotak Bank declined by about 0.7%, while Nestle saw a slight weakness of about 0.35%.
Reaction to results and news
Based on the results, action was clearly visible in the market today. Eureka Forbes fell about 7.2% after the weak results. At the same time, shares of NMDC and Tube Investments rose by about 5.5% after the results. There was profit booking in Mankind Pharma and its share price fell by about 3.4%. There was movement in some specific shares today based on news. IDBI Bank gained about 7.5%. HAL fell by about 5.5% amid news related to AMCA project. COHANCE fell about 3.2%, while M&M gained about 1.3%.
Why is the market sluggish?
– After yesterday’s big rally, the market is in wait-and-see mode.
– Short covering and light buying are providing support at lower levels.
– Light selling at higher levels by stranded traders.
-The market looks to consolidate before the next big uptrend.
If IT stocks had not spoiled the mood, there could have been a stronger rally.
Which levels are required? – Nifty has strong support at 25500-25650, while resistance is at 25875-26000.
– Bank Nifty has strong support at 59700-59900, while there is minor resistance range at 60400-60500.
– Strong rally is expected in Bank Nifty above 60500.
– If Nifty closes below 25600 and Bank Nifty closes below 59800, then lighten the position.
– If Bank Nifty closes above 60250 then increase bullish positions.
stock in action
eternal
Strong rally in stocks.
It was reported this morning that this stock will be on the top of the buying list of FIIs.
Infosys / HCL Tech / Persistent
A sell advisory was given for IT stocks this morning.
Sensex opened with a fall of 500 points and Nifty with a fall of 120 points, but then showed some recovery from lower levels. At 09:30 am, the Sensex was up 80 points at around 83,800. Nifty was trading at around 25,765 with a gain of 32 points. Bank Nifty was at 60,248 with a gain of 209 points.
The IT index fell by more than 5.7% in the opening. There was selling pressure in media, realty and mid-small healthcare sectors. Buying was seen in Auto, Metal, Oil & Gas, Consumer Durables and FMCG indices. HCL Tech, Infosys, TCS, Tech Mahindra, Wipro, Bajaj Finance, Bajaj Finserv and Kotak Mahindra Bank were among the top Nifty losers today. ONGC, Coal India, M&M, Power Grid, Grasim, ITC and Tata Steel were among the top Nifty gainers.
Some weak signals are being received. GIFT Nifty was down. A decline was seen in the US markets yesterday due to selling in the IT sector. A big update on India’s trade deal with the US, strong return of foreign investors, weakness in US markets, sharp rise in commodities and RBI policy meeting – all these factors can decide the direction of today’s trading. Apart from keeping an eye on Nifty and Bank Nifty, sectoral movements will also be important.