Taking Stock: Bulls make a comeback! Sensex regain 41k, Nifty nears 12,150
Bulls made a comeback on January 29 after two straight days of selling pushing the S&P BSE Sensex back above 41,000, while Nifty50 reclaimed 12,100 levels.
Santosh Meena, Senior Analyst, TradingBells:
It was a good day for the Indian market on the back of some relief move in the global market amid worries of Coronavirus. ITC, HDFC Bank and Infosys helped Nifty to trades above 12100 mark in today's trading session. FIIs could be again a net seller in cash market as there was some selling in HDFC Ltd, TCS, ICICI Bank, and Axis Bank while we can expect some short-covering by FIIs in F&O market in today's trading session. The sector-specific move is likely to continue ahead of the budget today where railway stocks did well today. We may see some reaction on the market tomorrow of Fed meeting's outcome where no change in interest rates is expected.
Technically, Nifty respected sacrosanct support of 12025 which is a good sign for the bulls. If Nifty manages to hold this level then we can expect a decent pullback rally in coming days where 20-DMA of 12200 will be first important hurdle and 12300 would be major hurdle while if Nifty slips below 12025 level then the overall texture of the market may turn bearish where 11850/11700 would be the next support levels.
Shrikant Chouhan, Senior Vice-President, Equity Technical Research, Kotak Securities:
The market witnessed a range bound activity post two days of correction. Today, the Nifty opened 50 points higher and due to stable global cues, modest broader market participation and strong price surge in Bajaj Finance post results helped bulls to maintain a positive stance over short. However, it trimmed some gains from the day highest level of 12169.60 in the last hour of trade but eventually managed to close above 12100, which is grossly positive in the near term. Technically, the short term trend is still weak but, trading above 12100 indicates continuation of a pullback rally up to 12200-12240. Conversely, trading below 12100 may trigger another correction wave up to 12050-12030.
Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities:
Nifty has been consolidating in the range of 12,050-12,250 since the past few trading sessions. We believe the index is in medium term uptrend while in the short term consolidation is expected. Suggest buying on dips with a major support seen at 11,800 while pressure is expected around 12,500 levels. Broader markets are outperforming which is in line with our medium term outlook.
Rohit Singre, Senior Technical Analyst at LKP Securities:
Index closed a day at 12,130 with gains of 74 points and formed inverted hammer kind of candle pattern on daily chart which is reversal candle by nature. Index has slightly shifted its support to 12,100-12,050 zone while resistance is coming near 12,170-12,230 zone, overall strength will come only above 12,275 zone till then we may see range bound move in said levels. Nifty bank closed a day at 30,877 with gains of 116 points forming a doji candle on daily chart, support for index is coming near 30,750-30,500 zone and resistance is coming near 31,070-31,280 zone.
India Ratings and Research has maintained Yes Bank long-term issuer rating of ‘IND A’ on rating watch negative and has withdrawn its short-term issuer rating of IND A1.
Nagaraj Shetti – Technical & Derivative Analyst, HDFC securities:
After showing a weakness in the last couple of sessions, the Nifty witnessed a decent upside bounce today and closed the day higher. A small body of positive candle was formed today with gap up opening (body gap, not a western gap). Today's upside gap remains partially filled.
The previous opening upside gap of 9th Jan (at 12045 levels) seems to have offered support for the market today. Today's candle pattern doesn't indicate strong upside bounce. However, follow-through upmove could extend this pre-budget upside till the week end.
The short term trend of Nifty is positive, the next upside levels to be watched at 11,250.
Market Close: Indian indices broke the two day losing streak and ended higher but off day's high on the back of buying seen in the selected metal, FMCG and auto stocks.
At close, the Sensex was up 231.80 points or 0.57% at 41198.66, and the Nifty was up 73.70 points or 0.61% at 12129.50. About 1268 shares have advanced, 1201 shares declined, and 164 shares are unchanged.
Tata Motors, Bajaj Finance, Bharti Infratel, Nestle and Bajaj Finserv were among major gainers on the Nifty, while losers were Eicher Motors, TCS, Yes Bank, Dr Reddy’s Labs and HDFC.
TCS extends partnership with ABN Amro: Tata Consultancy Services has strengthened and expanded its strategic partnership with ABN AMRO to help the latter build a new, scalable technology core that will increase its innovation velocity and support its digital ambitions.
Ashoka Buildcon executes concession agreement with NHAI: Ashoka Bettadahalli Shivamogga Road Private Limited has executed a concession agreement with National Highways Authority of India for the project on Hybrid Annuity Mode under Bharatmala in the State of Karnataka.