At Midday on March 7, Sensex and Nifty 50 Hold Steady After Reaching New All-Time Highs; Nifty 50 Crosses 22,500 Milestone for the First Time.
Early Market Optimism Attributed to Global Rally Following Powell’s Rate Cut Remarks; Sensex and Nifty Maintain Gains by Noon. Sensex Registers 69.21 Points (0.09%) Increase to 74,155.20, While Nifty Climbs 26.30 Points (0.12%) to 22,500.30. Market Movement Shows 1,985 Shares Advancing, 1,149 Declining, and 82 Unchanged. Broader Market Sees BSE Smallcap and BSE Midcap Indices Up 0.9% and 0.6% Respectively.
Sectoral Trends: Nifty Metal and Nifty Media emerged as the top gainers, each registering over a 1% increase. Nifty IT also saw a nearly 1% gain, led by major contributions from TCS, Infosys, and Wipro. However, oil and gas, as well as automobile stocks, experienced significant declines.
Fundamental View: According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the 3.7% decline in the smallcap index this week, contrasted with the 0.5% appreciation in Nifty, indicates substantial underperformance. Vijayakumar suggests that this trend may persist due to the inflated valuations in the broader market, with regulators signaling concerns about excessive speculation. He advises investors to consider shifting from smallcaps to fairly valued largecaps and partially to fixed-income products, prioritizing safety over returns.
Technical View: Sameet Chavan, Head of Technical and Derivative Research at Angel One, notes that the support zone of 22,200 held its significance and is expected to provide near-term cushioning, followed by broader support levels at 22,150 and 22,000. He points out that since the Nifty 50 is in uncharted territory, forecasting resistance levels is challenging. However, he anticipates strong bullish candle formation, suggesting potential resistance around 22,600-22,650 for the index.
Key Nifty and Sensex Movers: Key Nifty gainers include Bajaj Auto, UPL, JSW Steel, Tata Steel, and Bajaj Finance, while losers feature Mahindra & Mahindra, SBI Life Insurance, BPCL, and Axis Bank. Among the Sensex gainers are Tata Steel, JSW Steel, Bajaj Finance, Bajaj Finserv, and Asian Paints, while losers include Mahindra & Mahindra, Axis Bank, Maruti Suzuki, and ITC.
Stock Moves: SpiceJet shares surged 4% following the resolution of a Rs 413-crore dispute, while Phoenix Mills shares rose approximately 3.7% after HSBC raised its target price for the stock to Rs 3,130 per share.
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