Taking Stock | Bulls stay in control as Budget rally continues on 4th day, Nifty crosses 14,900

The Budget rally continued for the fourth straight day on February 4 supported by the PSU bank and metal stocks. Nifty crossed 14,900 amid mixed global markets.

At close, the Sensex was up 358.54 points or 0.71% at 50614.29, and the Nifty was up 105.70 points or 0.71% at 14895.70.

“One more positive session with index touching fresh high and closing the day on fresh highs at 14,888 with a gain of nearly one percent forming a bullish candle on the daily chart. Going forward, 14,750 has become a strong base in Nifty. Also one can consider this as a make or break level – any break below said levels can see some more profit booking but holding above said levels we may see index to march towards 15k mark,” said Rohit Singre, Senior Technical Analyst at LKP Securities.

Except IT, all other sectoral indices ended in the green with PSU Bank index adding nearly 6 percent, while metal and FMCG indices rising 2 percent each. Auto and energy indices added over 1 percent each.

Broader markets outperformed the main indices with BSE Midcap and Smallcap indices adding 1.4 percent and 1.2 percent, respectively.

ITC, SBI, Bajaj Finance, Coal India and ONGC were among major gainers on the Nifty, while losers included Asian Paints, UPL, Cipla, IndusInd Bank and Tata Motors.

Stocks & sectors

On the BSE, power, metal and FMCG indices rose 2 percent each, while auto, bank, oil & gas and capital goods indices added 1 percent each.

A volume spike of more than 100 percent was seen in Apollo Tyres, Godrej Properties and Sun TV Network.

Long buildup was seen in Manappuram Finance, BHEL and L&T Finance Holdings while short buildup was seen in Godrej Properties, Asian Paints and ICICI Prudential.

Over 250 stocks including Thermax, Bharti Airtel and SBI hit a fresh 52-week high on the BSE.

Technical View

Nifty formed a formed a Bullish candle on daily scale and continues its higher highs – higher lows formation of the last four sessions.

The day ended with some consolidation and gains of around 100 points with its highest ever close.

Now, Nifty has to continue to hold above 14750 zones to continue its bullish momentum towards 15000 and then 15250 zones while support can be seen around 14600 and then 14500 zones, said Chandan Taparia of Motilal Oswal Financial Services.