Technical View: The Nifty 50 index wiped out the loss of the previous season. Today, on February 4, the Nifty climbed above 23,700 due to shopping in all sectors except FMCG. After stopping its planned tariffs on Canada and Mexico by the Trump administration, the index opened above 23500, tracking positive Asian markets. There was further increase in increase in the index as the day progresses. The index crossed 23750 in Intrade. The index closed 1.62 percent above the day’s high level close to 23,739.25.
On the sectoral front, except for FMCG, all other sectoral indexes such as Nifty PSU banks, infra, energy and oil and gas closed into green mark with a 2 percent gain.
The Nifty Midcap index increased by 1.6 percent and the smallcap index by 1 percent.
The Nifty was Shriram Finance, L&T, Adani Ports, Bharat Electronics, IndusInd Bank’s largest gainers stocks. While Trent, Britannia Industries, Hero MotoCorp, Nestle India and Eicher Motors were the leading Louzers Stocks.
How can the Nifty move on Wednesday 5 February
The metaphor of LKP Securities said that today the Nifty has gone up after the Falling Wage Pattern Retest. It is indicating the possibility of a good rally in the short term. Additionally, the index remains above the critical 21ma on the daily timeframe. RSI is in a fast phase and growing after creating a base on daily timeframe. With this, it is indicating a strong momentum.
He said that in the short term, the index could move up to 24,050 and above. Whereas support is seen on 23,500 and 23,250.
Kotak Securities Decline in Nifty Shopping and Selling In Bounce
Srikanth Chauhan of Kotak Securities said that today, there was a sharp jump in the benchmark indexes. The Nifty closed 378 points and the Sensex closed up 1397 points. The sectoral indexes were trading in almost all major sectoral index positive zones. Oil and Gas and PSU Bank Indexes performed better and gained more than 2 percent. Technically, after a gap-up opening, the market successfully crossed the 23,500/77800 resistance zone in the Nifty/Sensex. After the breakout in it, the positive momentum intensified. Additionally, a bullish candle on the daily chart and an uptrend contraction formation on the intraday chart is indicating further it further from existing levels.
Chauhan further said that we believe that the nature of the current market is fast. For tomorrow, for traders, “buy intradays on a decline and sell on rallies” this will be an ideal strategy. For traders, Nifty/Sensex will now have 23,600/78100 and 23,500/77800 major support zones for bulls. While 23,800/78700 and 23,850/78900 may be seen as major resistance zones.
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