Updated February 23rd, 2024 at 08:39 IST

Nifty 50 poised to hit fresh record high at open amid global tech rally

As of 8:30 am, GIFT Nifty was trading at 22,304.50, signalling an opening above Thursday's record close of 22,217.45 for the NSE Nifty 50.

Reported by: Business Desk
Stock market news | Image:Republic World
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Nifty 50 record high: Benchmark index NSE Nifty 50 is on track to achieve a historic high for the fifth consecutive session on Friday, following the upward surge in global technology stocks, driven notably by Nvidia's exceptional earnings performance.

As of 8:30 am, GIFT Nifty was trading at 22,304.50, signalling an opening above Thursday's record close of 22,217.45 for the NSE Nifty 50.

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Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said, “The strategy remains aggressively bullish on Nifty as sentiment, fundamentals, and technical analysis align, with targets set at 22,500. Positive catalysts include rate cut predictions by Fed Vice Chair Jefferson, Nvidia's stock surge, and India's projected FY25 GDP growth of 6.5 per cent.”

“Key support lies at 21,875. Vodafone Idea plans fundraising, Coal India's capex likely to exceed target, and steel stocks in focus due to rising coking coal prices. Jindal Steel & Power (CMP 784) is a preferred buy with targets at 805 and 831, supported at 750. Five new stocks join the MSCI Global Standard Index. Trade recommendations include buying Nifty and Bank Nifty at CMP with specified targets and stops, and Tata Power (CMP 378) for inter-week momentum play,” Tapse added.

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Throughout this week, the Nifty has continuously reached new peaks, recording all-time highs in each of the four previous sessions and accumulating approximately 0.8 per cent growth over the period, particularly buoyed by robust performances in financial and consumer sectors.

Similarly, the 30-share BSE Sensex has seen a 1 per cent increase so far this week, standing just around 300 points shy of its own record high.

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Thursday saw both the S&P 500 index and Dow Jones Industrial Average achieving record closing highs, fuelled by Nvidia's remarkable earnings report and optimistic outlook. The Nasdaq also saw a significant uptick of about 3 per cent.

European markets reached record highs on Thursday, extending the positive sentiment into Asian markets on Friday. The MSCI Asia ex-Japan index witnessed a gain of over 0.5 per cent, while Japan's Nikkei 225, fresh from setting a new record high powered by Nvidia, surged another 2 per cent.

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In other news, insights from the Reserve Bank of India's recent policy meeting suggest a shift towards a less hawkish stance, with Barclays analysts noting a sentiment of optimism regarding robust economic growth. They anticipate a rate cut from India's central bank in June.

On the investment front, domestic institutional investors (DII) made net purchases of shares worth Rs 1,824 crore on Thursday, whereas foreign institutional investors (FII) sold stocks valued at Rs 1,410 crore.

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Stocks to watch

Vodafone Idea: Scheduled board meeting on February 27 to discuss fundraising proposals.

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Prataap Snacks: Denies ongoing negotiations with ITC (ITC.NS) for a stake sale, refuting media reports.

Concord Biotech: Receives good manufacturing practices certification from the Kenyan government for its Ahmedabad plant.

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Eureka Forbes: Lunolux sells a 10 per cent stake through block deals to various buyers including Goldman Sachs India Equity Portfolio and Morgan Stanley Asia.
 

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Published February 23rd, 2024 at 08:39 IST