February 16th 2024 Stock Market analysis

Indian Equities Close Higher on Friday After Recent US Data Trigger Hopes of Rate Cuts‍

The Indian stock market continued its upward trajectory for the fourth consecutive session on Friday, buoyed by gains in sectors such as auto, capital goods, pharma, IT, and realty. The positive sentiment was driven in part by recent macroeconomic data from the United States indicating a cooling economy, which raised expectations of a potential interest rate cut by the Federal Reserve. This optimism translated into significant gains for both the BSE Sensex and the NSE Nifty, with the Sensex rising by 376.26 points (0.5%) to reach 72,426.64, and the Nifty climbing by 129.90 points (0.6%) to settle at 22,040.70. Leading the pack of gainers were companies like Wipro, whose shares surged by 5%, alongside Mahindra & Mahindra and SBI Life Insurance, contributing to the market's positive momentum.

On the flip side, certain stocks faced downward pressure, with Power Grid Corp. of India, Oil & Natural Gas Corp., and State Bank of India emerging as the top losers. Despite these setbacks, the overall market sentiment remained bullish, supported by the anticipation of potential monetary policy adjustments by central banks to counterbalance economic slowdowns. Investors closely monitored both domestic and global economic indicators for clues regarding future market movements, underscoring the interconnectedness of financial markets in an increasingly globalized economy.‍

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Technical Outlook on 19th February ‍

The Nifty's daily chart displays a spinning top candle pattern, indicating the likelihood of a negative opening on Monday followed by a mild recovery towards the closing hours. Meanwhile, in the Bank nifty, profit booking could be anticipated with a potential pullback towards the 45534 level, unless the 46760 range is breached.

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‍Derivative Outlook on 19th February‍

PCR Analysis: Nifty PCR-OI has increased with nifty has positive close which shows PUT WRITING.

Open Interest Analysis: Nifty future Feb contract OI has increased with positive close which shows Long Buildup.

Cost of Carry Analysis: Nifty FEB month contract has ended in high compare with MARCH contract and low range compare with previous session which indicates a initially drop then mild recover in closing.

India VIX Analysis: India VIX has closed at 15.22 vs 15.23 (DoD) basis which shows flat in volatility.

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