Technical View: Nifty forms Hanging Man pattern, upside seems capped at 15,000 for Nifty
Mazhar Mohammad of Chartviewindia.in advised traders not to create fresh long side exposure and remain neutral. Sunil Shankar Matkar February 03, 2021 / 05:56 PM IST
The Nifty50, barring initial volatility, remained strong for the rest of the day and ended at record closing high on February 3, continuing Budget-driven uptrend for third straight session.
Banking & financials, auto, metals, IT and Pharma led the rally. The broader markets also joined the bull run with the Nifty Midcap and Smallcap 100 indices rising over 1 percent each.
The index formed candle which resembles Hanging Man kind of pattern on the daily charts, and continued its higher highs - higher lows formation of the last three sessions.
Benchmark indices hovered in a narrow range in early afternoon trade. All sectoral indices on the NSE were trading in the green. Shares rallied for the second day as investors cheered Union Budget announcements. Positive global cues also lifted the sentiment.
At 12:20 IST, the barometer index, the S&P BSE Sensex, surged 991.18 points or 2.04% at 49,591.79. The Nifty 50 index soared 290.35 points or 2.03% at 14,571.55.
In the broader market, the S&P BSE Mid-Cap index rose 1.37% while the S&P BSE Small-Cap index gained 1.24%.
The market breadth was strong. On the BSE, 1,614 shares rose and 1,098 shares fell. A total of 180 shares were unchanged.
Benchmark indices continued hovering near the day s low in early afternoon trade. The Nifty index slipped below 14,300 level. Barring the Nifty FMCG index, all the sectoral indices on the NSE declined. At 12:20 IST, the barometer index, the S&P BSE Sensex, dropped 391.26 points or 0.80% at 48,643.41. The Nifty 50 index lost 136.40 points or 0.95% at 14,297.30.
In the broader market, the S&P BSE Mid-Cap index fell 1.90% while the S&P BSE Small-Cap index declined 1.82%.
The market breadth was very weak. On the BSE, 698 shares rose and 2,081 shares fell. A total of 141 shares were unchanged.
Derivatives:
The NSE s India VIX, a gauge of market s expectation of volatility over the near term, jumped 4.03% to 24.98. The Nifty 28 January 2021 futures were trading at 14,305.40, at a premium of 8.10 point compared with the spot at 14,297.30.
Wall Street closed for Martin Luther King day
Wall Street was closed on Monday on account of Martin Luther King day. The Dow Jones Industrial Average closed 177.26 points, or 0.57% lower, at 30,814.26, the S&P 500 lost 27.29 points, or 0.72%, to 3,768.25 and the Nasdaq Composite dropped 114.14 points, or 0.87%, to 12,998.50.
European shares slip on economic recovery worries
European stocks inched lower on Monday as French retailer Carrefour tumbled after ending 16.2 billion euro ($19.57 billion) merger talks with Alimentation Couche-Tard, with worries about a slow economic recovery keeping investors on edge. The pan-European STOXX 600 index was up 0.16% after snapping a four-week winning run on Friday, with losses in oil and utilities offset by gains in technology stocks.
In 2006, Maxis had taken over Aircel by acquiring a 74% stake. The Aircel-Maxis deal had come under the scanner in 2011 when Aircel owner C Sivasankaran lodged a complaint with the Central Bureau of Investigation (CBI) alleging he had been pressured to sell his stake to Maxis. Sivasankaran also alleged that former Union minister Dayanidhi and his industrialist brother Kalanithi received kickbacks in the form of Maxis group’s investments (through the Astro network) in Sun TV Network, which is owned by the Maran family. On October 10, the CBI registered a case. The following year, the Enforcement Directorate registered a money-laundering case against the Maran brothers for allegedly receiving illegal compensation of about Rs 5.5 billion in the Aircel-Maxis deal.