Mumbai, February 5th: Nifty experienced a decline on Monday, shedding 82 points amidst intra-day volatility, reported Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
Closing at 21,771.70, Nifty dropped by 0.38%, while Sensex declined by 0.49%, closing at 71,731.42.
Despite opening positively, the market’s attempt to rally soon fizzled out, leading to a downward trend throughout the session. This downward trajectory, which commenced from the new all-time high of 22,126, continued into Monday, characterized by increased volatility at the highs.
Shetti remarked that while the current weakness is notable, it is unlikely to undermine the market’s near-term uptrend status, suggesting the possibility of an upside bounce from lower levels. He identified immediate support levels at around 21,600-21,500.
Vaibhav Vidwani, Research Analyst at Bonanza Portfolio, noted Nifty Pharma and Nifty Oil & Gas as outperforming sectors on Monday, with gains of 1.79% and 1.44%, respectively. Positive macroeconomic data, including an increase in India’s Services PMI to 61.8 and Composite PMI to 61.2 in January, bolstered market sentiment.
Among the top gainers on Nifty were Tata Motors, Coal India, BPCL, Sun Pharma, and Cipla, while UPL, Bharti Airtel, Bajaj Finance, HDFC Life, and Grasim Industries were among the top losers, according to Vidwani.
Deepak Jasani, Head of Retail Research at HDFC Securities, observed that Asian stocks mostly declined on Monday following a robust US jobs report, which dampened expectations of an imminent interest rate cut by the Federal Reserve. Despite reassurances from the China Securities Regulatory Commission regarding market protection measures, Chinese shares led the declines. European stocks, on the other hand, exhibited a mixed performance on Monday.
