February 14th 2024 Stock Market analysis

Indian market finish midweek strong, Driven by banking and IT sectors

On Wednesday, Indian indices closed positively, buoyed by strong performances in the banking and IT sectors. Both the BSE Sensex and NSE Nifty rebounded from earlier losses, supported by late-session buying activity. The Sensex concluded the day with a gain of 277.98 points, or 0.4%, reaching 71,833.17, while the Nifty rose by 96.70 points, or 0.4%, closing at 21,840. Bharat Petroleum stood out as the top gainer, experiencing a significant surge of 7%, followed closely by State Bank of India and Oil & Natural Gas Corp.

However, amidst the positive momentum, there were notable laggards in the market. Tech Mahindra, Cipla, and Sun Pharmaceutical Industries were among the top decliners, contributing to some downward pressure on the indices. Despite this, the overall market sentiment remained largely positive, reflecting the resilience and recovery of the Indian stock market.

Technical Outlook on 15th February

Nifty might find support around 21,670 and then 21,585, while facing resistance at 21,925 and 22,010. Currently, it's expected to trade positively within a certain range.

Similarly, Bank Nifty could find immediate support around 45,254 and then 44,600, with resistance levels at 46,562 and 46,889. Presently, it's also anticipated to trade positively within a specific range.

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Derivative Outlook on 15th February

PCR Analysis: The Nifty PCR-OI went up, and since the Nifty closed positively, it indicates there was put writing happening.

Open Interest Analysis: The open interest for the Nifty futures contract for February decreased, and since the close was positive, it suggests there was short covering taking place.

Cost of Carry Analysis: The Nifty contract for February ended higher than the March contract and also had a wider range compared to the previous session, suggesting a positive outlook.

India VIX Analysis: India VIX closed at 15.44, down from 15.81 the day before, indicating a decrease in volatility.

Nuvama Wealth Surges Over 13%: Investors Ride High on Momentum

Shares of Nuvama Wealth Management (formerly Edelweiss Securities) experienced a remarkable surge of more than 13% on Wednesday, following the firm's announcement of nearly doubling its net profit in the December quarter.

The company's stock soared by 13.44% to close at Rs 3,870 per share on the BSE, while on the NSE, it saw a 13.32% jump, settling at Rs 3,865 per share.

Throughout the trading day, the wealth management firm's shares hit their 52-week high, reaching Rs 3,898 on the NSE and Rs 3,895 on the BSE. Notably, trading volume reached 5.14 lakh equity shares on the NSE and 26,176 shares on the BSE.

In broader market movements, the 30-share Sensex surged by 267.64 points (0.37%) to close at 71,822.83 points, while the NSE Nifty rose by 0.45% to settle at 21,840.05 points.

Nuvama Wealth Management reported a substantial increase in net profit, reaching Rs 178 crore in the December quarter, compared to Rs 90 crore in the corresponding period last year. This significant growth was attributed to a comprehensive expansion in fee-based businesses.

The firm's revenue also saw a notable rise, increasing by 38% to Rs 558 crore for the period under review and by 29% to Rs 1,467 crore for the first nine months of the fiscal year.