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Informist, Monday, Feb. 17, 2025

By Akash Mandal

MUMBAI – Analysts were divided on the direction of benchmark indices Tuesday after the market ended slightly higher Monday after declining for the previous eight sessions. While some analysts expect the rise on Monday to persist, others view this as a temporary bounce back and believe that the correction will continue in the near term. Investors will also keep a close watch on developments from the US, especially on trade and tariffs.

The Nifty 50 and the BSE Sensex closed 0.1% higher each Monday after falling about 1% earlier in the session. The Nifty 50 ended 30.25 points higher at 22959.50 points and the BSE Sensex closed at 75996.86 points, up 57.65 points. India VIX, the pressure gauge of the domestic market, rose 4.7% to 15.7225. Though the market took a breather from the sell-off, recurring offloading by foreign investors, lower-than-expected earnings growth of Indian companies and expensive valuations are likely to keep gains under check for the domestic market.

Investors will have to wait and watch to see if the momentum that led to the recovery in benchmark indices Monday is sustainable, Kshitija Salvi, technical analyst at IDBI Capital Markets & Securities, said, adding that the trend will be bearish till then. There might be some upside in the short term since the market is in a highly oversold zone. However, the rise for the Nifty 50 will only be till 23100-23200 points, Salvi said, which is around 1% higher than the current level. The analyst expects the Nifty 50 to open flat on Tuesday but was unsure about the direction for the day. Salvi said the index may take support at 22800 points. 

On the other hand, Jatin Gedia, a technical research analyst at Mirae Asset Sharekhan, expects benchmark indices to rise more on Tuesday. Gedia too expects the upside to be limited and pegs the resistance at 23150 points. The market is technically oversold and data shows that the put-call ratio has decreased, indicating some upside in the short term. Gedia also believes the Nifty 50 may take support at 22800 points, hinting that this will be a key level to watch out for the index. 

JM Financial Institutional Equities recently said that it expects the Nifty 50's fall to have bottomed out. The index tends to bounce up in the near term historically after recurring sell-off, which is why limited downside is seen for the index, it said in a report. The brokerage pegged the resistance for the index at 23810, and a breakout from that level would indicate a move towards 24800 points. Meanwhile, the support was pegged at 22500 points. 

On the earnings front, ABB India is the only company among the top 500 listed companies that is yet to report its December quarter earnings. The company will report its earnings later Monday. Its net profit is seen rising 35% on year to INR 4.6 billion and revenue is seen growing 14% to INR 31.5 billion, according to an average of estimates from six brokerage firms.  End

Edited by Saji George Titus

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