Closing Bell: Market at fresh record highs with Nifty above 13,700; HDFC top gainer

Taking Stock | Market Extends Gains Into 5th Session In A Row; Sensex Inches Close To 47k

Mid and smallcaps underperformed and their sectoral indices on BSE fell up to 0.23 percent.... Read More

The Nifty continued with its journey towards north on December 17. The index is nicely trading in a rising channel for the last several sessions. In the case of minor degree dips Nifty has been taking support near the lower channel line and the key hourly moving averages. These parameters are shifting higher along with the price action. Hence the near term support zone shifts higher to 13650-13600. On the other hand, the daily & hourly upper Bollinger Bands continue to raise the bar higher. The overall structure suggests that the index can head towards 13900 in the short term

Markets traded upbeat and extended gains, largely driven by positive global cues. High optimism over the US stimulus package and positive commentary by the Fed led to a good start which further strengthened as the day progressed. The Nifty Index ended with healthy gains of 0.4% at 13,740 levels. A mixed trend was witnessed on the sectoral front wherein Capital Goods, Banking and Consumer Durables ended with gains whereas Metal, Oil & Gas and Auto were the top losers. The broader markets underperformed wherein both Midcap and Smallcap ended with losses of 0.1-0.2%.

Markets are inching higher with every passing day but lack momentum which shows a positive yet cautious approach among the participants. Since we’re closely following global cues, any correction in the global markets may induce profit taking here too. We thus suggest limiting naked leveraged trades and adding positions only on dips.

Market is rallying on the affirmation of the US FOMC policy decision to keep rates unchanged and assurance of continued support through further stimulus until the economy reaches the employment and inflation target. Along with this, the market is inching higher on expectations of upcoming events like further stimulus packages, Brexit progress and vaccine developments. Post the recent rally, mid and small caps in India are marginally slowing down, it failed today to participate in the rally with the flattish trend, adding caution ahead forthcoming developments.

Index reacted on previous breakout and opened a day with gap up but saw some profit booking from day’s high. Index closed a day at 13741 with gains of 58 points and formed a one doji candle pattern on daily chart representing indecision. Going forward 13680 will act as immediate support any breakdown below 13680 can lead in more profit booking and we may see index to take a dip towards 13600 zone which is another support on the downside, today’s high will act as immediate resistance on higher side which is at 13775.

The market witnessed some strong trend and an attempt to overcome the resistance level around the Nifty 50 Index level of 13750. While sustaining above 13750 is the key factor from a short-term perspective. We suggest maintaining above this level market to gain momentum and to open the gate for a movement till 13990. The momentum indicators like RSI, MACD to stay positive and market breadth to improve, further strengthening the view of a short-term bullish outlook.

The Nifty has successfully closed above the crucial level of 13700. We should now be headed to 14000-14100 levels. 13400-13500 is now a good support for the markets. Every dip can now be utilised to accumulate positions for higher targets.

Indian rupee erased all the intraday gains and ended flatat 73.58, amid buying seen in the domestic equity market.It opened marginally higher at 73.53 per dollar versus Wednesday's close of 73.58 and traded between 73.38-73.58 range.

The buying momentum continued on the fifth straight day with benchmark indices touch fresh record highs.

At close, the Sensex was up 223.88 points or 0.48% at 46,890.34, and the Nifty was up 58.00 points or 0.42% at 13,740.70. About 1234 shares have advanced, 1485 shares declined, and 137 shares are unchanged.

Divis Labs, Bajaj Finance, HDFC, HDFC Bank and IndusInd Bank were among major gainers on the Nifty, while losers were Hindalco Industries, Coal India, Adani Ports, ONGC and Power Grid Corp.

Among sectors, except pharma and banks other indicees ended in the red. BSE Midcap and Smallcap indices ended with marginal losses.

ICRA forecast India's FY21 GDP at -7.8% expect recession to end in Q4FY21. The Q3FY21 GDP seen at -1% and Q4 at +1.3%, reported CNBC-TV18.

Natco Pharma announced the launch of Rivaroxaban molecule, under brand RPIGAT. Rivaroxaban is an anticoagulant medication used to treat and prevent blood clots. Rivaroxaban is currently sold by Bayer under brand name of Xarelto, in the Indian market.

The public issue of Mrs Bectors Food Specialities, a leading premium biscuit and bakery firm in north India with a 4.5 percent market share, was subscribed 187 times on the morning of December 17, the final day of bidding.

The offer received bids for 247 crore equity shares against the initial public offering (IPO) of more than 1.32 crore equity shares (excluding the anchor book), data available on the exchanges showed.

HFCL's new state-of-the-art Fiber to the home cable manufacturing facility at Hyderabad, Telangana has started commercial production of Optical Fiber Cables for Fiber to Home Applications, w.e.f. December 16, 2020.