The Nifty 50 increased by 2% on Friday during trading to reach a new all-time high of 22,126.80. The index, however, cooled off and closed with a gain of 156 points, or 0.72 per cent, at 21,853.80.
In intraday trading on Friday, February 2, the equity benchmark Nifty 50 increased by about 2% to reach a new all-time high of 22,126.80 due to strong buying across all sectors and encouraging global indications.But the index steadied down and ended the day at 21,853.80, up 156 points, or 0.72 percent.
Experts said that the pro-growth Interim Budget encouraged investors to purchase quality companies following the recent slump in addition to favorable global cues.
“The budget’s non-populist emphasis on budgetary consolidation is a major plus. The significant funding for rural housing will help all industries involved in construction, including steel, cement, paints, and so forth. The significant decrease in bond yields as a result of the net market borrowing being held at ₹11.75 trillion is another crucial budget lesson. The chief investment strategist of Geojit Financial Services, V K Vijayakumar, stated that banks will benefit from this.
Although there is generally a positive feeling in the market, there will likely be some volatility in the near future due to the 2024 General Election. To get their opinions on the expected Nifty levels by the end of February 2024 here are what top analyst says about it.
Here’s what Top Analysts Say
Shrikant Chouhan, Head-Equity Research, Kotak Securities
Positively, the Nifty 50 made a long bullish candle on the weekly chart and reached a new all-time high today.
Although the market’s medium-term structure is positive technically, we can witness rangebound activity in the short future due to transient overbought situations.
21,800 is a crucial support level for positional traders. If the market closes over 22,127, there’s a chance the rally will continue, pushing the market to levels 22,300 and 22,500.
However, the market may drop below 21,600 or 21,400 levels if the momentum below 21,800 weakens.
Avdhut Bagkar, Derivatives & Technical Analyst, StoxBox
The selling pressure that is currently present in the 21,850–21,800 level area is what the Nifty 50 index is attempting to overcome.
The index may rise sharply above this level and hit a new all-time high of 21,350. The 21,500 and 21,400 levels could provide support for the index given its weakness. Moving forward, the positive bias might be weakened by an aggressive break of 21,400.
Buying on dips is the trend till that point. Bulls may be preparing for the next leg of growth after a closing above 21,850, and a new historic peak will provide fresh purchasing motivation.
Rohan Shah, Technical Analyst, Religare Broking
Given that the month has only just begun, it would be premature to make a comment at this time.
But given the price action, we think 22,150 will serve as an intermediary barrier, and a sustained rise above this would initiate the subsequent leg of the upward trend, which should take us to 22,500 by the end of the month.
However, should Nifty fall short of the aforementioned barrier, the index will likely consolidate in a wider range, with 21,500 serving as a crucial support level for the month of February.
Rajesh Palviya, SVP – Technical and Derivatives Research, Axis Securities
The Nifty 50 has clearly broken out of the consolidation area of the previous 10–11 sessions (21,800–21,200), signaling a robust bull rebound. This is due to the strong momentum following the budget.
Bullish mood is further supported by a 50-day SMA support zone, which backs this consolidation range.
All short- to medium-term corrections towards 21,800 levels still provide buying opportunities because the overall short- to medium-term trend is still positive.
The benchmark index created a “Doji” candlestick pattern on the monthly time frame with the close of 21,725 on January 24. This pattern indicates a brief pause in the previous advance.
Therefore, any steady ascent above 22,124 might pick up significant momentum and reach new highs.
The RSI strength indicator on a daily, weekly, and monthly basis is in positive territory, indicating increased and sustained underlying strength.
We anticipate that this buying trend will continue as long as overall attitudes remain strong, reaching levels of 22,300, 22,500, and 22,630.
The levels of 21,800, 21,700, and 21,650 are where the short-term support zones are located.
Riyank Arora Technical Analyst at Mehta Equities
By the end of February, we may anticipate the surge to extend reaching the 22,400 and 22,500 levels if Nifty is able to close each day above 22,150.
On the other hand, a move below 21,900 would be regarded as an instantaneous trend change.
Geojit Financial Services’ chief market strategist, Anand James
Since we reached a new high at the beginning of the month, we should refrain from chasing rallies and instead focus on our upside target of 22,450–22,550 for the time being.
If momentum continues, we are willing to consider the probability that the upswing will continue to 22,750–23,500.
But once in the 22,400 range, we will grow tired of trade rejections. For this reason, the downside marker might be positioned close to 21,720 to guard against a possible deep dive to 20,800.
Shiju Koothupalakkal, Technical Research Analyst
Technical Research Analyst Shiju Koothupalakkal of Prabhudas Lilladher Nifty has been holding steady around 21,500 for some time now, with 21,200 (the 50EMA level) acting as the key important support.
As of right now, the index’s breach of the critical 21,750 barrier has further improved the bias, and we can expect the following goals, the 22,400 and 22,800 levels, to be reached in the next few days.
The Nifty is expected to reach a target of 22,800 by the end of February 2024, with 21,500 serving as a crucial support level.
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