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Nifty continues ‘one day up, one day down’ trend

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Shillong, February 6: Nifty ended higher on Tuesday, continuing the ‘one day up, one day down’ trend.

At close, Nifty was up 0.72 per cent or 157.7 points at 21,929.40, while Sensex ended higher by 454.67 points or 0.63 per cent at 72,186.09.

Cash market volumes on the NSE were lower at Rs 1.31 lakh crore, said Deepak Jasani, Head of Retail Research at HDFC Securities.

Broad market indices rose more than the Nifty, even as the advance decline ratio rose to 1.80:1.

Shares were mixed on Tuesday in Asia, where Chinese stocks surged after a government investment fund said it would step up stock purchases and a report said President Xi Jinping is set to meet with officials to discuss the markets.

Energy stocks pushed European markets higher in early trading on Tuesday after oil major BP reported its second-highest profits since 2012, Jasani said.

Nifty rose on Tuesday, almost negating the bearish pattern of the last two days. It, however, needs to close above 21,970 to remove any bearish expectations for the near term. Nifty could now face resistance in the 21,970-22,125 band while 21,727 could offer support on downfalls, he added.

Rupak De, Senior Technical Analyst at LKP Securities, said that Nifty exhibited a predominantly sideways trend throughout the day, with traders expressing uncertainty regarding the market’s direction.

A range-bound movement is expected to persist until a breakout occurs on either side. A decisive upward move beyond 21,950 has the potential to propel the Nifty towards 22,200. Conversely, a decline below 21,850 could instigate a correction towards the 21,700 level, he said. (IANS)

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