Market News
2 min read | Updated on March 01, 2024, 20:40 IST
SUMMARY
The NIFTY50 climbed to a fresh all-time high and formed a bullish marubozu candle on the daily chart. As we informed our readers in our morning trade setup blog, the index shielded its 20 DMA and swing low of 21,875 on expiry day and failed to give the follow through of the downward move. Experts believe that the NIFTY50's uptrend has strengthened with the rebound in banking stocks.
Stock list
NIFTY50 close in green for the second consecutive day, scales new peak
Markets hit a fresh all-time high and closed in green for the second consecutive day. The NIFTY50 surpassed its previous all-time high to close at 22,338, up 1.4%, while the SENSEX gained 1.7% to close at 73,745. The broader markets also moved in sync with the benchmark indices. Both the NIFTY Midcap 100 and NIFTY Smallcap 100 gained 0.9% and 0.5% respectively.
Supporting sectors: Metal (+3.6%), Private Banks (+2.5%) and Auto (+0.3%) pushed the index higher.
Selling pressure: Media (-1.4%), Pharma (-0.9%) and IT (-0.5%) sectors were the top laggards.
The NIFTY50 opened the day above the 22,000 mark and zoomed through all resistance levels (22,080 and 20,300). The index formed a bullish marubozu candle on the daily chart and posted its biggest daily gain since 29 January. Better-than-expected Q3 GDP data (8.4%) and improved auto sales figures fueled the rally in banks and auto stocks.
A bullish marubozu is a powerful candlestick pattern that indicates strong buying pressure. It's characterised by a long, filled body with minimal or no upper and lower wicks. A bullish marubozu indicates that the opening price is equal to the low and the closing price is near the day’s high, indicating that buyers dominated the trading session.
🚗Auto stocks were in focus as carmakers shipped record numbers of passenger vehicles in February. Shares of Maruti Suzuki, Tata Motors and Mahindra & Mahindra rose between 2% and 3% respectively.
🚀Larsen & Toubro (4%) received a major order (₹5,000-₹10,000crore) from the Indian Air Force for the supply of high power radars.
🏦ICICI Bank hit a 52-week high and gained 3%. The bank was also in the news as it further increased its stake in ICICI Lombard.
💊Dr. Reddy’s slipped 3% after the company was named in an antitrust lawsuit in the U.S.
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