Nifty extends its winning streak for the Second Day

Mr. Nandish Shah - Deputy Vice President, HDFC Securities

Nifty extended its winning streak for the second straight day, adding 16 points to close at 26,146. The index opened 44 points higher but remained range-bound through most of the session, consolidating within a narrow band. Turnover on the NSE's cash segment dipped 21% from the previous day.

Bajaj Auto, Shriram Finance, and NTPC emerged as the top gainers in the Nifty pack. On the flip side, ITC, Tata Consumer, and Dr. Reddy's came under selling pressure and ranked among the key laggards.

The drop in cigarette stocks followed the Finance Ministry's formal notification of February 1 as the effective date for imposing additional excise duty on tobacco products, along with a health cess on pan masala.

Barring the Nifty FMCG, Pharma, and Healthcare indices, all other sectoral indices ended in the green, led by strong gains in Auto, Realty, and Metal segments.

In the broader market, performance was mixed - Nifty Midcap 100 rose 0.45%, while Nifty Smallcap 100 edged lower by 0.05%. Market breadth remained positive for the second consecutive session, with an advance-decline ratio of 1.14 on the BSE.

The Indian rupee weakened for a second day against the US dollar, depreciating by 9 paise to settle at 89.96. Thin liquidity amid limited supply and persistent dollar demand exerted upward pressure on the currency pair, as major global forex markets remained shut for the New Year holiday.

Technically, a sustained move above 26,234 could signal a breakout from the current consolidation phase and open the door for a retest of all-time highs and potentially higher levels. On the downside, the 25,900 zone is expected to act as immediate short-term support for the index.

Source : Equity Bulls

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