Winning streak continues for 5th straight day on supportive RBI policy; Nifty crosses 15K intraday

The economy-supportive policy action by Reserve Bank of India (RBI) added fuel to the growth-oriented Budget rally on the fifth consecutive day on February 5 with indices hitting fresh record highs. At close, Sensex was up 117.34 points or 0.23% at 50,731.63, and Nifty was up 28.60 points or 0.19% at 14,924.30.

Reserve Bank of India (RBI) has kept Repo Rate and Reverse Repo Rate unchanged at 4 percent and 3.35 percent, respectively and also remain with the accomodative policy stance as long as required.

“The markets have closed well in the green with supporting volumes. 15,000 has proved to be a psychological resistance but that should not deter the thought process on the trend. We continue to remain bullish and the Nifty has the wings to achieve 15,200,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

“A buy on dips strategy would be advisable. There is ample scope for the markets to correct during intraday sessions. These dips can be utilised to make fresh long positions for higher targets. This way the risk reward trade off would be favourable,” he added.

On the sectoral front, Nifty PSU Bank index gained 3.6 percent, while pharma index up 1 percent. However, selling seen in the auto, infra and IT stocks.

Broader markets underperformed the main indices with BSE Midcap and Smallcap indices losing 0.9 percent and 0.28 percent, respectively.

SBI, Tata Steel, Divis Labs, Kotak Mahindra Bank and Dr Reddy’s Labs were among major gainers on the Nifty, while losers were Axis Bank, Bharti Airtel, Tata Motors, ICICI Bank and UPL.

Stocks & sectors

On the BSE, auto index shed 1 percent and also selling witnessed in the capital good, oil & gas and IT stocks. However, realty, metal, bank and FMCG ended in the positive territory.

A volume spike of more than 100 percent was seen in Cadila Healthcare, UBL and Divis Laboratories.

Long buildup was seen in SBI, BHEL and HDFC Bank while short buildup was seen in Zee Entertainment, Coforge and RBL Bank.

Over 300 stocks including ITC, Hero MotoCorp and Thermax hit a fresh 52-week high on the BSE.

Technical View

Nifty formed a formed a Small Bodied candle on daily scale but continues its higher highs – higher lows formation of the last five sessions.

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

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