Key Indices At Support Levels, Near-Term Trend Bullish, Says Axis Securities Analyst
The benchmark stock indices recouped losses to end higher on Thursday.
The Nifty 50 and the Bank Nifty indices are holding ground on their important support areas for a near-term trend that is likely to remain bullish, according to Rajesh Palviya of Axis Securities Ltd.
"The overall structure of the market is on the bullish side; we're protected at the support level of 21,900," Palviya, senior vice president-technical and derivatives research at the brokerage, told NDTV Profit.
"On the higher side, 22,100–22,200 are the major call concentration areas. The major short covering move will play out at the 22,150 mark," he said, projecting likely consolidation in the benchmark.
The Nifty Bank took support from the put concentration level of 46,500, he said, adding 47,000–47,200 as the major call concentration on the higher side. "If we are able to take out those levels in this pullback, then it's possible we can see short covering towards 47,600–47,800."
Towards the end of the February series, this momentum can extend and see the Nifty scaling new highs, he said.
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The benchmark stock indices recouped losses to end higher on Thursday, led by information technology and auto stocks.
The Nifty ended 162.40 points, or 0.74%, up to a record closing high of 22,217.45 and the S&P BSE Sensex settled 535.15 points, or 0.74%, higher at 73,158.24.
The government's move to hike the minimum floor price for sugarcane will hurt the balance sheets of sugar companies, especially their bottom line, but they're likely to pass on the cost to consumers, said Vijay Chopra, managing director and chief executive officer, Enoch Ventures Ltd.
Shares of sugar companies fell on Thursday after the Cabinet Committee on Economic Affairs increased the fair and remunerative price of sugarcane by 8% for the 2024–25 season.
Aditya Birla Group's entry into the paint segment will be good in terms of competition in the space, but he expects Grasim Industries Ltd. to face a challenge in its target for double-digit growth in its first year.
"I would buy Asian Paints over Grasim for the paint business. Asian Paints has corrected and valuation-wise, it looks enticing," he said.
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