Nifty fails to close above 13,150 but midcap shine. What analysts say


Indian shares markets closed at record highs boosted by sharp gains in top automaker Maruti Suzuki. But sharp losses in HDFC Bank capped gains for the overall markets. The NSE Nifty 50 index ended 0.15% higher at 13,133.9, while the benchmark S&P BSE Sensex was up 0.03% at 44,632.65. A slowing pace of new coroanvirus cases in the country and COVID-19 vaccine developments globally supported the sentiment.

Both Sensex and Nifty have hit record highs in 10 of their last 17 sessions, amid record inflows from foreign institutional investors.

Maruti Suzuki India jumped 7.5%. Capping gains, top private-sector lender HDFC Bank Ltd closed down 2.1% after the Reserve Bank of India halted the lender from sourcing new credit card customers and launching digital businesses due to outages in bank’s internet banking, mobile banking, payment utilities over the past two years, it said in a regulatory filing.

Market heavyweight and HDFC Bank’s top shareholder, HDFC Ltd, slid 1%.

Rival SBI Cards And Payment Services Ltd jumped 5.2% after the news, while its parent State Bank of India climbed 3.8%.

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Investors are now awaiting the outcome of a three-day meeting of the Reserve Bank of India’s monetary policy committee that ends on Friday, where the central bank is widely expected to stand pat on interest rates.

The broader indices – BSE midcap and small indices – continued to outshine the benchmark ended higher by 0.9% and 0.7% respectively. On the sectoral front, IT stocks saw some profit-taking while metal, auto and pharma were among the top gainers.

Ajit Mishra, VP – Research, Religare Broking Ltd

“We expect the rate-sensitive pack, especially banking and financials, to be in focus on Friday due to the scheduled outcome of RBI’s MPC meet. The banking index has been witnessing consolidation in line with the benchmark and might see a directional move after the event. Meanwhile, traders should restrict leveraged positions and wait for clarity.”

Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments

“After a marginal gap up, the Nifty failed to cross 13150 on a closing basis. This is a stiff resistance zone for the index. If we are successful in closing above 13150, we can achieve 13250-13300 which will be the next resistance level where the markets can witness selling pressures.”

Vinod Nair, Head of Research at Geojit Financial services

“The broad market is continuing its buoyancy led by rally in mid and small cap stocks. This trend can continue given the gap between the pricing of main and broad stocks. Today, large caps are mildly underperforming, in which financial stocks did contributed to the upside, but weakness in HDFC bank post the RBI curbs limited the upside. Hopes are alive that economic recovery will grow wider as fresh covid cases are reducing, adding strength to the momentum.”

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