Nifty hits new high, Sensex up 138 points; energy, PSU banks lead gains

1 month ago

The momentum is expected to continue with the fresh set of economic data expected during the week, Siddhartha Khemka of Motilal Oswal Financial Services has said

March 04, 2024 / 09:42 AM IST

As Nifty is trading at all-time high levels hence traders are advised to hold their long positions with a stop loss of 22,250 on a closing basis.

As Nifty is trading at all-time high levels hence traders are advised to hold their long positions with a stop loss of 22,250 on a closing basis.

The benchmark indices edged higher on March 4, with the Nifty hitting a fresh record high of 22,440.90 as the Street took cues from gains in the US and Asian markets. Energy and PSU bank stocks led the gains in morning deals.

At 9.20 am, the Sensex was up 136.97 points or 0.19 percent at 73,943, and the Nifty was up 39.60 points or 0.18 percent at 22,418. About 1,587 shares advanced, 1,122 declined and 134 were unchanged.

In the broader market, indices traded mixed. The BSE midcap index rose marginally and the smallcap index was in the red.

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The release of the US ISM services PMI, testimony by US Fed Chair Powell and US unemployment data will be closely watched for their potential impact on market sentiment. Any negative surprise on crude price front can affect the mood of the market.

Investors' attention will also be focused on political developments leading up to parliamentary elections, with potential support for Nifty Bank from FTSE flows. For now, the market is ignoring bad news and the bullish momentum continues, said analysts.

Fundamental view

The momentum is expected to continue while taking cues from a fresh set of economic data this week, according to Siddhartha Khemka, Head-Retail Research, Motilal Oswal Financial Services, Ltd.

The auto sector will be in focus on the back of better-than-expected monthly sales numbers. Cement and metals are also expected to be in focus on the back of stronger economic growth, while defence and solar names will be in focus on account of improved order visibility.

As the Nifty is trading at all-time high levels hence traders are advised to hold their long positions with a stop loss of 22,250 on a closing basis. They are also advised to buy on dips with the same stop loss, said Deven Mehata, Research Analyst, Choice Broking.

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Technical view

"Although the overall sentiment remains positive for Nifty, the index must surpass the 22,400 mark to trigger a new rally. A decisive breakthrough above 22,400 could propel the index towards 22,600. On the downside, support is situated at 22,250-22,200," said Rupak De, Senior Technical Analyst, LKP Securities.

"For Bank Nifty, the overall sentiment remains positive as long as it stays above 42,000. A decisive breakthrough above 47,500 could potentially propel the index towards 48,200. On the downside, support is identified at 47,000," he added.

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Harshita Tyagi is a budding journalist on a mission to prove that financial markets and geopolitics can be as entertaining as your favorite TV show

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