February 21st 2024 Stock Market analysis

Sensex and Nifty Experience Profit Booking with IT Stocks Leading the Decline

Domestic benchmark indices halted their six-day winning streak on February 21, as traders opted to lock in profits. The IT and oil & gas sectors emerged as the primary drags on the indices. The 30-share flagship Sensex concluded 434.31 points, or 0.59 percent, lower at 72,623.09, while the Nifty retreated by 141.90 points, or 0.64 percent, settling at 22,055.05. Broader markets witnessed sustained selling pressure, with key indices experiencing declines of over a percent. Investor sentiment turned cautious ahead of the release of the minutes from the US Fed's latest meeting, prompting profit-taking in sectors such as IT, oil & gas, power, and metals, thereby ending the market's six-session winning streak.

Top gainers on the NSE Nifty include Tata Steel, trading at 144 with a high of 2.09%, SBIN at 772.05 with a gain of 1.57%, and IndusInd Bank at 1515 with a rise of 0.72%. Conversely, the top losers are BPCL, trading at 633 with a loss of 3.73%, NTPC at 335.9 with a decrease of 2.83%, and Coal India at 434 with a decline of 2.80%. Tata Steel emerges as the most actively traded stock by volume.

Technical Outlook on 22nd February 

The Nifty has displayed a bearish engulfing candle pattern on the daily chart, indicating a potential negative reversal. However, confirmation of the reversal would require further negative closes. For intraday trading, Nifty is likely to find immediate support around 21930 followed by 21805, with resistances expected near 22180 and 22305. Presently, Nifty exhibits a negative bias.

Meanwhile, Bank Nifty may encounter immediate support levels around 46781 and 46543, while resistances are anticipated at 47257 and 47495. The current outlook for Bank Nifty also suggests a negative bias.

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Derivative Outlook on 22nd February 

PCR Analysis: Nifty PCR-OI has decreased with nifty has negative close which shows CALL WRITING.

Open Interest Analysis: Nifty future Feb contract OI has decreased with negative close which shows Long Unwinding.

Cost of Carry Analysis: Nifty FEB month contract has ended in low compare with MARCH contract and negative range compare with previous session which indicates a negative bias.

India VIX Analysis: India VIX has closed at 15.93 vs 16.07 (DoD) basis which shows decrease in volatility.

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Raymond's Stock Soars 7% with Launch of First Project Beyond Thane

Raymond's share price surged over 7 percent on February 21, one day after the announcement by Raymond Realty regarding the launch of its inaugural project outside Thane, named 'The Address by GS, Bandra'. This move signifies the company's strategic expansion plan beyond Thane through joint development agreements (JDAs) in the Mumbai Metropolitan Region (MMR). The project, spanning across 2.74 acres in Bandra East, aims to establish a gated community with connectivity to key locations such as Bandra-Kurla Complex and Bandra-Worli Sea link, among others. Offering a mix of 2, 3, and 4 BHK apartments, the project is anticipated to yield substantial economic returns, with revenue projections exceeding Rs 2,000 crore, as stated by Raymond. The venture into real estate marks a significant step for the Raymond Group, spearheaded exclusively by Group Chairman and Managing Director Gautam Singhania. Commenting on the new endeavor in the MMR, Singhania expressed, "The Address by GS, Bandra, represents a significant milestone in our growth journey as this marks our first project beyond Thane." As of 12:37 pm, Raymond shares were trading 6 percent higher at Rs 1,881 on the National Stock Exchange (NSE). Over the past year, the stock has outperformed Nifty, delivering a 45 percent increase compared to the benchmark's 24 percent rise during the same period.