February 27th 2024 Stock Market analysis

‍Market Recap: Nifty Rebounds Near 22,200, Sensex Surges 305 Points

Indian benchmark indices rebounded on February 27, with the Nifty hovering around 22,200, fueled by buying in auto, capital goods, IT, and realty sectors. Despite a flat to negative start, the market steadily gained momentum throughout the day, closing near its peak. The Sensex concluded the day up 305.09 points or 0.42% at 73,095.22, while the Nifty rose by 76.30 points or 0.34% to 22,198.30.

Top gainers on the NSE Nifty include Tatamotors, trading at 962.55 with a 2.73% increase, TCS at 4100.5 with a 2.49% gain, and Powergrid at 293 with a 1.81% rise. Meanwhile, top losers are Heromotoco at 4420.1 with a 1.69% decrease, Bajfinance at 6555.4 with a 1.32% loss, and SBIN at 749.5 with a 1.24% decline. HDFC emerges as the most active stock by value, trading at 1421.65 with a value of 1,89,097.07 lakhs.

Technical Outlook on 28th February

Nifty is likely to find immediate support levels near 22,132 followed by 22,066, with resistances anticipated at 22,264 and 22,330. Currently, Nifty is exhibiting a negative trend within a range-bound trade pattern. Similarly, Bank Nifty is expected to encounter immediate support around 46,390 and 46,192, with resistances expected at 46,786 and 46,984. Bank Nifty is also currently observing a negative trend within a range-bound trade.

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Derivative Outlook on 28th February 

PCR Analysis: Nifty PCR-OI has increased with nifty has positive close which shows PUT WRITING.

Open Interest Analysis: Nifty future Feb contract OI has decreased with positive close which shows Short Covering.

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 15.73 vs 15.60 (DoD) basis which shows increase in volatility.

Marico Declares Interim Dividend of Rs 6.50 per Share

Marico Ltd's board approved a second interim dividend of Rs 6.50 per share on February 27, but the FMCG firm's shares saw minimal reaction, trading only 0.4 percent lower at Rs 523.40 on the NSE at 3:05 pm. The record date for the dividend is March 6, with eligible investors set to receive their payout by March 28. In 2023, the company had announced two dividends: Rs 3 per share in November and Rs 4.50 per share in March. Last month, Marico recorded a 16 percent year-on-year rise in consolidated net profit to Rs 386 crore for the October-December quarter, while its total revenue decreased by 2 percent to Rs 2,422 crore from the previous year. The muted demand trends were attributed to factors like FMCG volume growth remaining in low single digits and the impact of price cuts, according to Motilal Oswal.