The 30-share BSE Sensex ended flat by 60.80 points at 73,806.15 level while the Nifty 50 closed at 22,378.40 level, up 39.65 points or 0.18%.
Also Read: Stock market today: Sensex ends flat, Nifty 50 closes up 39.65 points in second part of special trading session
Net-net, the Nifty 50 was able to close this extended trading week at the 22378 level, up 0.74%. India’s GDP growth of a solid 8.4%, the Fed’s favored PCE inflation measure in line with consensus expectations, and global stock markets, notably Japan’s Nikkei and Wall Street, hitting fresh record highs were the main positive catalysts , which continued to run in the background. , according to analysts.
Also Read: Over 40 small-cap stocks gain between 10-40% as Sensex registers third straight weekly gain; RailTel among winners
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Among sectoral indices on Saturday, the Nifty Media Index gained 1.75%, making it the top sector among sectoral indices, while the Nifty Metals index continued to shine even brighter, up 1.58%.
NSE and BSE on Saturday conducted a special live trading session to assess the robustness of their disaster recovery systems. A special business session is part of the framework for the Business Continuity Plan (BCP) and Disaster Recovery Site (DRS) management system.
Also Read: Indian stock market special live trading session today: Check time, target, other important details
Market Outlook
In line with our expectations, the Nifty 50 managed to hold the 21,800 mark despite elevated volatility and registered a fresh all-time high of 22,353 as strong GDP numbers boosted market sentiment. The index reversed the decline of the past five sessions in just one session, highlighting a faster retracement that makes us reiterate our positive stance and expect Nifty 50 to head towards 22,700 in the coming week. In the process, we expect large caps to relatively outperform the broader market as the ratio of Nifty 50 vs Nifty 500 bottomed out around 1 level. Meanwhile, 21,800 would act as immediate support in the coming truncated week, said Dharmesh Shah, Vice Chairman of ICICI Securities.
Also Read: Week Ahead: Macro data, FII activity, global cues among key market triggers as Nifty 50 eyes 22,600 this week
Empirically, in the parliamentary election year, Nifty 50 has a tendency to bottom out in February-March, followed by a minimum 14% rally (from the bottom towards) parliamentary election result in each of seven cases during the last three decades. Thus, we expect Nifty 50 to maintain the same pace and head towards 23,400 by June 2024. Therefore, bouts of volatility ahead of the general elections should be capitalized as a buying opportunity from a medium-term perspective, explained Shah.
Mirroring the index movement Bank Nifty (which carries 33% in Nifty 50) witnessed a faster pace of retracement as it recovered six sessions of decline in just one session, highlighting a robust price structure. We expect Bank Nifty to carry its upward momentum and gradually move towards a life high of 48,600 while strong support is placed at 46,200, said Dharmesh.
Also read: Dividend Stocks: Marico, Sanofi India, among others to trade ex-dividend next week; check full list
Stock Recommendations by Dharmesh Shah
As for stocks to buy on Monday, Dharmesh Shah recommended two stocks:
Buy Bank of Baroda in the range of ₹266-273 for the purpose of ₹305 with a stop loss of ₹252.
Buy Ambuja Cements Ltd in the range of ₹605–618 for the purpose of ₹658 with a stop loss of ₹581.
Also Read: Bag today: Sensex ends over 1,000 points higher, Nifty 50 settles above 22,300 mark led by metal, banking stocks
Disclaimer: The Research Analyst or his relatives or I-Sec does not have actual/beneficial ownership of 1% or more securities of the subject company, as of the end of 02/03/2024 (earlier date) or has no other financial interest and does not have any material conflict of interest.
The views and recommendations above are those of individual analysts, experts and second-hand companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 03 Mar 2024, 13:51 IST