Indian market rose for the third consecutive day in a row on Tuesday, supported by strong global cues to hit fresh record highs. The S&P BSE Sensex rallied by more than 200 points while Nifty50 inched closer towards 14,600 levels.
Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 247 points to 49,517 while the Nifty50 gained 78 points to close at 14,563.
Sectorally, the action was seen in telecom, energy, realty, public sector, and oil & gas while profit booking was witnessed in consumer durables, healthcare, and capital goods.
On the broader markets front – the S&P BSE Mid-cap index rose 0.4 percent while the S&P BSE Small-cap index rose 0.25 percent - underperforming benchmark indices.
Nifty Bank rose 1 percent supported by a rally in Bank of Baroda, IDFC First Bank, PNB, SBI, HDFC Bank, and Federal Bank.
Experts are of the view that financials supported the rally that helped the benchmark indices to hit fresh record highs. Sectoral rotational activity clearly shows that the broader market trend is still strong but a rise in crude oil prices or strength in the US dollar could pose a near-term threat.
“US bond yield has changed its trajectory to a rising trend, which could impact EMs in the future. But FII inflows are strong and the dollar continues to be weak due to oversupply of USD led by the high amount of fiscal stimulus,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.
Here is what experts think that investors should do on January 13:
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
On Wednesday, benchmark indices would take hold at the level of 14,650/49,800 or at 14,700/50,000. On the downside, the Nifty should find support between 14,450 or at 14,400.
Our strategy should be to buy select stocks on dips or Index between 14,460/14,430 levels. The bullish reversal formation of Reliance Industries would help the Sensex to reach the milestone of 50,000 in the near term.
Paras Bothra, President of Equity Research, Ashika Stock Broking
Given limited resources, the Union Budget is expected to be a constrained one, although few tweakings or postponement of expenses might be seen. Nevertheless, given the fact that three pillars of GDP- consumption, private investment, and exports are not expected to be supportive, higher government spending through capital account and not revenue would set the tone for future economic growth, thus the onus rests with the government only.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The short-term trend of Nifty continues to be positive. Now, one needs to be cautious about the higher levels of weakness in the next few sessions (2-3 sessions).
The next upside levels to be watched comes around 14,700-14,800, and the immediate support is placed at 14,490.
Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services Limited
Nifty formed a healthy Bullish candle on a daily scale and continued the formation of higher highs from the past fourteen trading sessions.
Now, it has to continue to hold above 14,400 zones to witness a fresh move towards 14,750 then 15,000 zones while on the downside major support exists at 14,300 and 14,200 levels.
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