How are the Markets Looking ?
Today, on the 14th of February 2024, we witnessed a remarkable resurgence in the Nifty 50. Despite opening with a gap down and an initial test on the downside, Nifty shattered all doubts about recovery, showcasing a phenomenal performance by closing up by approximately 0.45%. From its lowest point today, we saw gains of about 1.4 to 1.5%. The day’s strong green candle, nearly engulfing the previous session’s red candle, signals a robust recovery, recovering 50% of the recent slump and looking strong for the days ahead.
In light of today’s impressive performance, we’ve updated our tracking zones. A key level to watch is around 21,800, a resistance point Nifty has encountered multiple times. Its ability to break out of this zone and trade comfortably above will be crucial. Meanwhile, our updated trend line indicates that as long as we hold onto the current support zone, Nifty is well-positioned for further consolidation before embarking on an upward trend.
Nifty Heatmap
Shifting our focus to the sectoral overview, it was a handsome day for the markets across all sectors except for IT. BPCL emerged as the top gainer, clocking an impressive 6.7%, followed by SBI with a 4.2% increase. Despite mixed performances from other banks, the heavyweight HDFC bank lagged significantly, which if performed, could have propelled the Nifty even higher due to its substantial weightage in the Nifty 50.
Sectoral Overview
Public sector enterprise stocks showcased a strong comeback, leading today’s sectoral performance chart with 3.3% gains, 3.2% gains on PSU Banks, while the energy sector also performed well with a 2.2% increase. Conversely, the IT and pharma sectors lagged, each recording a 1% loss.
Mid & Small Cap Performance
A notable mention is the performance of the mid-cap and small-cap indexes. Mid-caps showed a splendid recovery, aligning with the strong indication from the previous session’s candle, closing at 17,773. Small caps, after a weak start, rallied to close strongly, underscoring the bull market regime’s continuity in this segment and closing at 14,829 levels.
Nifty Bank Overview
Nifty Bank is 0.9% up but this entire zone is very choppy. The next trendline to watch out for would be 46,800 acting as resistance.
Highlight – Top Winners & Losers of Nifty 50
Now, turning to a crucial topic of discussion: the performance of the Nifty 50 in the last twelve months, which saw a 21% gain. Highlighting the 4 top and bottom performers within the Nifty 50, we observed remarkable disparities. Stocks like Coal India and Adani Ports surged by over 100%, showcasing the potential for significant alpha over the index. On the flip side, some heavyweights like HDFC Bank lagged, impacting those invested in index funds due to their substantial weightage in the Nifty.
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