Nifty tests 23200 as rally enters fourth day on broad based

Following a brief spell in the red, the midcap 100 and smallcap 100 indices clawed backed in the positive with gains of about 0.7 percent each.

Benchmark indices Nifty and Sensex closed sharply higher on March 20, extending their winning streak as a broad-based rally lifted all sectoral indices over 1 percent. IT stocks led the gains, surging after global markets cheered the Federal Reserve’s steady rate cut outlook.

At close, the Sensex was up 899.01 points or 1.19 percent at 76,348.06, and the Nifty was up 283.05 points or 1.24 percent at 23,190.65. About 2296 shares advanced, 1554 shares declined, and 124 shares unchanged.

Following a brief spell in the red, the midcap 100 and smallcap 100 indices clawed backed in the positive with gains of about 0.7 percent each. Despite the recent bounce back, analysts are still cautious as they believe that valuations are expensive.

“Consistent falls of the US dollar index (DXY) have reduced the intensity of FII selling while DII buying continues to be strong, thus triggering the recent upside. Supportive domestic data indicating a MoM rise in economic activity and the view that more rate cuts are envisaged during the year are adding to the attractiveness of equity. The sustenance of the ongoing rally is expected to stay for the broad market in the short term and then drive based on the outlook on Q4FY25 results, to be released in April,” Vinod Nair, Head of Research at Geojit Financial Services said.

All 13 sectoral indices traded in the green, with Nifty IT leading the charge just a day after tumbling over 2 percent during the last trading session. Heavyweights TCS, Infosys, and Tech Mahindra drove the rebound. The Auto index extended its strong run, rising 1.47 percent, while Nifty Realty, Oil & Gas, and FMCG gained between 1.2 to 1.4 percent. Nifty Pharma, Metal Energy, and Bank also rose over a percent.

“The confluence zone near 23,000, coinciding with the weekly expiry and post-FOMC developments will be crucial. A decisive move beyond this level could drive an extension towards 23,200 and further towards the 200SMA at 23,400 in the near term. On the downside, in case of any negative outcome and a subsequent price dip, the 22,750–22,700 zone is likely to act as a strong buying opportunity,” Sameet Chavan of Angel One said.

In today’s session, shares of cable manufacturers Polycab India and Havells slipped up to 8 percent in the afternoon as Adani Enterprises, the flagship company of the Adani Group said that its wholly-owned subsidiary Kutch Copper Ltd. has incorporated a JV company called Praneetha Ecocables Ltd., in which, Kutch Copper will have a 50 percent stake. The JV will be engaged in the manufacturing, marketing, distribution, buying and selling of metal products, cables and wires.

Shares of Garden Reach Shipbuilders & Engineers (GRSE) extended their rally, rising over 7 percent to Rs 1,760 after the company signed a fresh Memorandum of Understanding (MoU). This follows a 20 percent surge in the stock on Wednesday. The state-owned defence shipbuilder announced a deal with PWD Nagaland for the supply of eight double-lane modular Steel bridges to improve infrastructure in the state.

Shares of One 97 Communications Paytm plunged as much as 6 percent after international brokerage Jefferies maintained its ‘hold’ call on the counter suggesting a few roadblocks that could hinder the growth prospects of the company. With a price target of Rs 850 per share, analysts forecast an upside potential of 11.4 percent from the last close of Rs 763 per equity share. Paytm shares have crashed nearly 30 percent since the start of the year.

Bharti Airtel, Titan Company, Bajaj Auto, BPCL and Britannia Industries were the top gainers on the Nifty. IndusInd Bank, Bajaj Finance, Shriram Finance, and Trent were the major laggards on the index.

Disclaimer: Moneywealth research provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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Nifty tests 23,200 as rally enters fourth day on broad-based buying

Following a brief spell in the red, the midcap 100 and smallcap 100 indices clawed backed in the positive with gains of about 0.7 percent each.

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