Taking Stock | Bull holds tight grip on D-St; Sensex gains 533 points, Nifty above 18,200

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The market rally continued on the fourth straight session on January 12, with Nifty closing above 18,200 and Sensex above 61,000 level, led by the auto, realty, metal and power stocks.

Amid supportive global cues and falling omicron cases helped the Indian benchmark indices to make a gap-up opening and remained higher throughout the session. At close, the Sensex was up 533.15 points or 0.88% at 61,150.04, and the Nifty was up 156.50 points or 0.87% at 18,212.30.

“Led by realty, auto, energy and banking stocks, benchmark indices continued its winning streak for the 4th consecutive day despite fast spread of covid cases,” said Vinod Nair, Head of Research at Geojit Financial Services.

“Globally, sentiments were positive ahead of the release of US inflation data as the Fed Chair’s testimony eased inflationary worries.”

“Realty stocks continued its upward rally on healthy business updates resulting in improved outlook. The initial result updates of major IT firms will determine the momentum of the week ahead,” he said.

M&M, Bharti Airtel, Reliance Industries, IndusInd Bank and ONGC were the top Nifty gainers. Losers were Titan Company, TCS, Shree Cements, Britannia Industries and Cipla.

On the sectoral front, Nifty Auto, Energy, Metal indices gained 1-2 percent, while Nifty Bank rose 0.7 percent.

Broader markets performed in-line with main indices, with BSE midcap and smallcap indices up 0.7-1 percent.

Stocks and sectors

Among sectors, BSE Metal, Power, Auto, Oil & Gas and Realty were up 1-2 percent, while Bank and Capital Goods indices rose 0.5 percent each. On the other hand, IT and Pharma indices ended flat.

A long build-up was seen in Chambal Fetiliser, M&M Financial and Indian Hotel, while there was a short build-up in Ipca Laboratories, Metropolis Healthcare and Abbott India.

Among individual stocks, a volume spike of more than 300 percent was seen in M&M, GSPL and Indiamart Intermesh.

Over 500 stocks, including Mercator, SRF, L&T and Deepak Fertilisers, hit a 52-week high on the BSE.

Technical View

The Nifty formed a small bodied bullish candle on daily scale and gave its highest daily close of the last 53 sessions.

“The Nifty has to hold above 18,181, for an up move towards 18,300 and 18,400 levels, whereas support shifts higher to 18,081 and 18,000 zones,” said Chandan Taparia, Analyst-Derivatives, Motilal Oswal Financial Services.

Outlook for January 13

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments:

The market has successfully closed above 18200 and we should be looking forward to 18400-18500 as the next target zone.

If we get intraday slips or corrections, traders can look at these opportunities to buy into the index for higher targets.

Mohit Nigam Head PMS, Hem securities:

Investor sentiments magnified as the world bank increased the growth forecast for India to 8.7% for FY23 from its earlier prediction of 7.5%. This can be attributed to resurgence in the private capex cycle. Now, all eyes are set on the industrial and retail inflation data that will be out later in the day.

On the technical front, the key resistance levels for Nifty50 are 18,400 and on the downside 18000 can act as strong support. Key resistance and support levels for Bank Nifty are 39,000 and 38,400 respectively.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

The Nifty has maintained a breakout continuation formation but profit booking at higher levels is not ruled out due to the extended rally in recent sessions.

The 18100 level would be the key to watch out for and above the same the uptrend texture will continue up to 18275-18350. On the other hand, below 18100, the market may trigger short-term correction up to 18050-18000 levels.

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