Synopsis
On February 5, 2023, the Indian stock market experienced little change in morning trade after a recent surge due to easing US tariff tensions. Key stocks and sectors demonstrated mixed performance, with upcoming RBI MPC meeting attracting investor focus.Key Takeaways
- Domestic benchmark indices opened flat.
- Positive start with slight gains in Sensex and Nifty.
- FIIs became net buyers after 23 sessions.
- Investors eyeing RBI MPC meeting on February 7.
- Resistance levels observed at 23900 and 24000.
Mumbai, Feb 5 (NationPress) The local benchmark indices opened the day nearly unchanged on Wednesday, following a significant rally in the stock market as trade tensions regarding US tariffs have abated.
Post a positive start, both the Sensex and the Nifty showed minimal movement. At around 9:31 AM, the Sensex was approximately at 78,595.81, slightly up, while the Nifty stood at 23,769.80, gaining nearly 30 points or 0.13%.
HDFC Bank, Infosys, Oil and Natural Gas Corp, Tata Consultancy Services, and Bharat Petroleum Corp were contributors to the Nifty 50 index.
Conversely, Asian Paints, Larsen and Toubro, Titan, and Nestle India exerted downward pressure on the Nifty 50 index.
Within the NSE, out of 12 sectors, nine advanced while three declined. The NSE Nifty FMC faced the most decline, whereas the NSE Nifty Oil & Gas saw the most growth. The BSE Midcap and Smallcap indices experienced gains during early trading.
Market analysts suggest that following a positive start, the Nifty may find support at 23,600. On the upside, 23,800 could serve as immediate resistance, followed by 23,900 and 24,000.
After being net sellers for 23 consecutive sessions, foreign institutional investors (FIIs) reversed course on February 4, becoming net buyers of equities worth Rs 809 crore. In contrast, 35 domestic institutional investors (DIIs), after being net buyers for the past 35 sessions, sold equities worth Rs 430 crore.
This robust buying trend enabled the Nifty index to close above the 23,700 threshold. Furthermore, global markets showed positive movement.
According to Sameet Chavan of Angel One, the US's decision to suspend tariffs resulted in a strong recovery in US futures overnight, which set a positive tone for Asian markets.
“While the momentum remains favorable, key resistance levels need to be observed at 23900 (89 DEMA), 24000 (200 DSMA), and 24250 (previous swing high),” he noted.
Following a strong Union Budget announcement, all attention is directed towards the RBI’s upcoming monetary policy committee (MPC) meeting on February 7, where a rate cut is anticipated.
