Daily Markets Wrap - Feb 2, 2022 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty rose for the third consecutive session on Feb 02 helped by the positive reactions to the Union Budget introduced on Feb 01. Nifty opened gap up and inched up through the day with minimal corrections. At close, Nifty was up 1.16% or 203.1 points at 17780.

On a day when volumes on the NSE were a little lower than recent average, Realty, Consumer Durables, Banks, IT and Healthcare indices were the main gainers. BSE Midcap index was up 1.08% while the Smallcap index was up 1.54%.

Global stocks seem set for the biggest four-day rally since November 2020 as companies from the U.S. to Europe reported better-than-forecast earnings and dip-buying returned to technology shares. Shares rose in Europe on Wednesday as investor sentiment continued to steady after a retreat last month.

FPI participation has fallen over the past two sessions which is reflected in the lower volumes. Advance decline ratio however is sharply positive suggesting broad participation in the midst of a halt in large FPI selling. After three consecutive days of gains, Nifty could consolidate/correct a bit over the next few days even as FPIs form their view on Indian markets post the Budget. 17812-17879 could be the resistance for the Nifty over the near term while 17617 is the support.

Source : Equity Bulls

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