Nifty posts record closing again, mid-, small caps outperform; here’s what analysts make of today’s trade

Headline indices BSE Sensex and Nifty 50 ended marginally up today ahead of RBI MPC outcome scheduled on Friday. The broader index Nifty 50 made a record close for the consecutive day. While Sensex ended just 15 points up at 44,633 levels. The top Sensex gainer, which managed to keep the indices in green was Maruti Suzuki, rising 7.45 per cent. The other index contributors include Asian Paints, State Bank of India (SBI), HCL Tech and Reliance Industries (RIL). The broader markets outperformed the equity benchmarks today. S&P BSE MidCap index ended up 0.85 per cent or 146 points at 17,313, while S&P BSE SmallCap index managed to gain 0.68 per cent or 116 points at 17,245.

Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst, Gemstone Equity Research & Advisory Services

“It was a day of consolidation for the markets as the NIFTY headed nowhere and ended with minor gains. The session remained grossly dominated with weekly options rollover. The strikes of 13150 saw continuous Call Writing and this ensured the NIFTY settling below this level. As we step into Friday’s trade, the NIFTY’s behavior against the price level of 13145 stands crucial. Despite marking a fresh lifetime high again, the Index has not made a breakout as it has slipped below 13145. We may see markets posting some more gains if the Index is able to move past this level. However, if the NIFTY stays below this level for long, we may see some minor profit-taking moves happening.”

Vinod Nair, Head of Research at Geojit Financial services

“The broad market is continuing its buoyancy led by a rally in mid & small-cap stocks. This trend can continue given the gap between the pricing of main and broad stocks. Today, large caps are mildly underperforming, in which financial stocks did contribute to the upside, but weakness in HDFC bank post the RBI curbs limited the upside. Hopes are alive that economic recovery will grow wider as fresh covid cases are reducing, adding strength to the momentum.”

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investment

“After a marginal gap up, the Nifty failed to cross 13150 on a closing basis. This is a stiff resistance zone for the index. If we are successful in closing above 13150, we can achieve 13250-13300 which will be the next resistance level where the markets can witness selling pressures.”