Sensex, Nifty scale fresh record closing highs, PSUs lead the rally; will this bull run sustain?

Extending the post Budget day rally into the second consecutive day on Tuesday, BSE Sensex and Nifty 50 have surged another 2.5 per cent. BSE Sensex zoomed 1,197 points or 2.46 per cent to 49,797.72, while the broader Nifty 50 index surged 367 points or 2.57 per cent to end at 14,647.85. The 30-share index topped the 50,000-mark in intra-day deals and hit a high of 50,154. Market breadth favored bulls once again as 1,755 shares advanced and 1,184 scrips declined. While 175 stocks remained unchanged. Investors became richer by over Rs 4 lakh crore on Tuesday. Following the strong sentiment, the market capitalisation of BSE-listed companies rallied Rs 4.12 lakh crore to Rs 196.65 lakh crore. The broader markets also surged, but underperformed their benchmark peers. The S&P BSE MidCap and SmallCap indices settled 2.26 per cent and 1.59 per cent higher, respectively.

Joseph Thomas, Head of Research, Emkay Wealth Management

The markets kept up the momentum gained from a positive budget presented yesterday. The most spectacular movement has been witnessed in the bank index which rallied by almost 3.50 % in today’s session compared to a 2.50 % rise in Sensex and Nifty. The rally is broad-based and derived its basic premises from the growth-oriented proposals in the budget across various key sectors of the economy, putting the highest emphasis on self-reliance and transformation into one of the fastest-growing economies of the world.

Ashis Biswas, Head of Research at CapitalVia Global Research Limited

Strong trends in the market and an attempt to overcome the resistance level around the Nifty 50 Index level of 14750 (high as on 21st Jan 2021). While a breakout above 14750 is the key factor from a short-term perspective, the market is likely to maintain momentum and reaches the level of 14950-15000. The momentum indicators like RSI, MACD to recover from their low made in the last week of January 2021. As such odds of a fresh breakout is significantly high.

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

The Nifty failed to get past the 14750 level which is a crucial point. Crossing this level would cement the upside direction of the markets which should lead us to 15000. However, it is advised to enter on dips or mild corrections. The index has good support at 14100 and hence we should accumulate positions closer to that level.

Vinod Nair, Head of Research at Geojit Financial Services

Start of a new rally is noticed in sectors like banking, infra and auto, supported by a renewed traction provided by a growth-oriented budget. After consecutive selling by FPIs last week, the market witnessed a reversal in trend becoming net buyers post the budget. Positive global sentiments ahead a new US COVID support bill also lifted the market.

S Ranganathan, Head of Research at LKP Securities

A growth and capex oriented Budget has provided ammunition to the Bulls as the BSE SENSEX attempts to scale mount 50K yet again. Several stocks notched up 52-week highs today in the broader market even as pivotals across sectors helped Indices notch up gains. The spectacular listing of the Paint company surprised the street as it recorded huge gains today on the listing.