Markets up as bulls drive bears out of the ring

Indian markets opened in the green on the first day of February month’s future and options expiry. The markets continued to witness a pre-budget rally on the hopes of industry-friendly proposals from the government in the forthcoming Union Budget 2017.

Nifty was not able to cross the level of 8,650. BSE Sensex and Nifty indices increased 0.58 per cent and 0.45 per cent, respectively. At closing bell, Nifty rose 38 points to close at 8,641 and the BSE Sensex increased 160 points to close at 27,868. On the NSE, 32 shares closed in the green, while 18 shares ended the day in the red and 1 remained unchanged.

All sectoral indices closed in the green, except FMCG. Bankex surged more than 334 points. Auto index rose more than 144 points and Consumer Durables increased more than 191 points. Capital Goods, Healthcare, IT, Metals and Oil & Gas indices increased 19 points, 39 points, 30 points, 15 points and 74 points, respectively. However, IT index declined 131 points, while Mid-cap and Small-cap increased 83 and 69 points, respectively.

The Asian markets closed on a mixed note on Friday. While Hang Seng declined 0.06 per cent, Nikkei rose 0.34 per cent and KOSPI increased 0.81 per cent.

European markets were also trading in the negative zone.

Derivative Analysis

Nifty future closed on a positive note at 8,672. Going ahead, 8,714/8,604 will be the immediate support levels.