Sensex Gain 57 Points, Nifty at 22,959; Tomorrow Nifty Prediction
Tomorrow Nifty Prediction
Sensex and Nifty Close Higher After Eight Days of Decline: What to Expect on February 18
Stock Market Recap: The Indian stock market experienced a welcomed change in direction on February 17, as both major indices, Sensex and Nifty, managed to close with marginal gains after eight consecutive days of declines.
This recovery, though modest, signals a potential turning point as market participants displayed resilience amid the volatility.
Small- and medium-cap stocks, which had been under pressure, showed strong recovery during the session, helping the mid-cap and small-cap indices end in the green, while larger blue-chip stocks experienced mixed performances.
At the close of the trading day, the Sensex rose by 57.65 points, or 0.08%, ending at 75,996.86, while the Nifty gained 30.25 points, or 0.13%, closing at 22,959.50.
Despite these modest gains, the session was marked by significant fluctuations, and the broader market still displayed a negative bias.
Among the 4,046 stocks traded, 1,286 stocks advanced, 2,625 stocks declined, and 135 stocks remained unchanged.
Top Gainers and Losers:
In terms of individual stock performance, Bajaj Finserv, Adani Enterprises, Power Grid Corp, IndusInd Bank, and Shriram Finance emerged as the top gainers in the Nifty 50 index.
These stocks benefited from strong investor interest, with notable buying activity pushing their prices upward.
On the other hand, M&M, Bharti Airtel, Wipro, TCS, and Infosys experienced declines, reflecting the broader market’s mixed sentiment.
Despite gains in some stocks, the weakness in the IT sector, combined with challenges in other key sectors, kept investor sentiment subdued.
Sectoral Performance:
The market saw notable divergence across sectors. While some sectors experienced gains, others faced pressure.
Among the sectoral indices, the Auto, IT, Telecom, and Media indices were the worst performers, declining between 0.5% and 1%.
These declines were largely driven by profit-taking, especially in the IT sector, which had experienced a significant rally in recent months.
The Pharma, PSU Bank, Energy, Consumer Durables, and Metal sectors, on the other hand, posted gains of 0.5% to 1%, contributing positively to the market’s recovery.
Small- and Mid-Cap Performance:
The small- and mid-cap stocks were an important aspect of today’s market action. The BSE Midcap index rose by 0.5%, while the BSE Smallcap index lost 0.6%.
This reflected a mixed performance in smaller stocks, with some segments of the market experiencing strong upward momentum while others remained under pressure.
In particular, small-cap stocks in the Pharma and Metal sectors witnessed some buying interest, as investors looked for bargains in stocks that had recently underperformed.
Expert Views on Market Outlook:
Market experts continue to express caution amid the ongoing volatility and mixed economic signals.
According to Vinod Nair, Research Head at Geojit Financial Services, the weak earnings growth seen in the third quarter of FY25, along with continued selling pressure from Foreign Institutional Investors (FIIs), are significant factors limiting the chances of a major rally in the near term.
Additionally, the weakening rupee and widening trade deficit continue to raise concerns among investors.
The situation is likely to continue to dampen investor sentiment and keep market volatility elevated in the short term.
Despite these concerns, Nair suggests that there could still be opportunities for investors if the uncertainty around US trade policies resolves, or if signs of improved discretionary spending emerge globally.
A potential easing of these macroeconomic risks could serve as a catalyst for a broader market recovery, especially in sectors like Pharma and Metals, which have been relatively more resilient.
Aditya Gaggar,
Director at Progressive Shares, also weighed in on the market’s performance. He highlighted the significant volatility that marked today’s trading session, with a sharp decline early on followed by a gradual recovery.
This volatility is a clear indication that market participants are cautious and awaiting further cues on the global economic outlook.
Gaggar pointed out that the Pharma and Metal sectors were the biggest contributors to the recovery, while the Media and IT sectors lagged.
This divergence in sectoral performance reinforces the theme of selective investing in sectors that are performing well.
Technical Analysis and Key Levels for Nifty: The Nifty index showed notable resilience during the session.
Nifty successfully defended the 22,800 level for the third consecutive time in recent weeks. This level now appears to have become a strong support zone for the index, and many analysts view it as crucial for determining the near-term direction.
If the index manages to maintain its position above this support level, it could signal further consolidation and potential for gradual upward movement.
On the upside, the 23,100 level remains an immediate resistance for the Nifty. A breakout above this level would signal a more sustained rally in the index, while a failure to break past this resistance could mean that the market remains stuck in a range-bound phase.
Nifty traders should closely monitor this range, as a decisive move above or below it could provide further clarity on the market’s direction in the coming days.
Prediction for February 18 and Beyond:
Looking ahead to February 18, market participants are expected to continue monitoring both domestic and global developments.
The upcoming week could see heightened attention on global trade issues, especially with developments related to US-China trade relations and other economic factors that might influence investor sentiment.
Domestic data on inflation, industrial production, and other economic indicators could also play a key role in shaping market trends.
Furthermore, the ongoing earnings season will continue to be a critical factor in determining the broader market sentiment.
While corporate earnings are expected to remain subdued in the near term, any positive surprises or signs of recovery in certain sectors could drive stock-specific movements.
Small-cap stocks are likely to remain in focus as investors look for growth opportunities, although caution is advised due to the broader uncertainties in the market.
Final Remarks:
After a tough eight-day stretch, the market showed signs of recovery on February 17, with Sensex and Nifty both closing higher.
While the gains were modest, the recovery in small and mid-cap stocks, along with the defense of critical support levels, offered a glimmer of hope for investors.
However, market sentiment remains cautious, with global economic uncertainties, weak earnings growth, and FII selling continuing to limit the upside potential.
Investors should remain selective in their approach, focusing on sectors and stocks that show promise, while keeping a close eye on key technical levels and economic developments in the coming days.
With the Nifty facing resistance at 23,100 and support at 22,800, the market’s short-term direction is likely to hinge on a breakout from this range.
