Closing Bell: Nifty ends above 13,550, Sensex gains 154 pts; metals outshine

The Nifty continues to trade in the rising channel on the hourly chart. Post the positive start, an intraday dip dragged the index into the negative territory; however the index found support near the lower channel line as well as near the key hourly moving averages & the Nifty recovered thereon. Though the upside momentum has weakened in the last few sessions the bulls are managing to hold on the support parameters. Hence as long as the Nifty trades above the support zone of 13450-13400, it is expected to stretch towards 13700.

Market is continuing its bull run with a sustained interest in PSU banks and small & mid-cap stocks. Industrial output data, shows a growth in consumer durables production surpassing the pre-covid level and strong pickup in electricity and manufacturing sectors. The domestic market is expected to gain its momentum from the global market, due to an eventful week ahead with Britain & EU moving for a no-deal Brexit and the US markets awaiting the outcome of the Fed meeting.

Index closed a day at 13558 with gains of 44 points and formed a doji candle for third consecutive session hinting indecision in the markets. Nifty has formed a good base near 13500-13440 zone holding above said levels we may see bullish momentum to continue towards immediate hurdle zone of 13600-13650 zone, below 13400 zone we may see some immediate trend reversal. Nifty Bank closed a day at 30746 with gains of half a percent, support for Nifty Bank is coming near 30500-30200 zone and resistance is coming near 31000-31200 zone.

We have closed within the resistance range of 13400-13700. Until we do not get past 13700 or break 13400 we will not witness any meaningful trading move. Since the bias is on the upside, falls or corrections can be utilised to accumulate long positions. 13350-13400 is a good support for the Nifty.

The lackluster movement in the market and an attempt to break the resistance level around the Nifty 50 Index level of 13580. The short-term technical condition of the market appears like a sideways correction in the process. Sustaining above 13400 levels, we expect the market to gain momentum, that could lead to an upside projection till the 13730 level. The momentum indicators like RSI, MACD to show divergence, indicating a likelihood of further consolidation around the current market level.

Benchmark indices ended higher for the second consecutive day on December 14 with Nifty above 13,550.

At close, Sensex was up 154.45 points or 0.34% at 46,253.46, and the Nifty was up 44.30 points or 0.33% at 13,558.20. About 1769 shares have advanced, 1009 shares declined, and 131 shares are unchanged.

L&T, Cipla, ONGC, Coal India and IOC were among major gainers on the Nifty, while losers were Eicher Motors, Hero MotoCorp, M&M, HDFC Life and Divis Labs.

Except Auto other sectoral indices ended in the green led by the metal and PSU Bank. BES Midcap and Smallcap indices rose 0.8 percent each.

Asahi Songwon Colors Limited, a global leader in Blue Pigments, Monday announced commencement of commercial operations at the Dahej plant of Asahi Tennants Color, its joint venture with Tennants Textile Colours Limited (TTC) of UK.

The state-of-the-art Dahej plant will make Red & Yellow pigments. The installed capacity of the AZO pigment plant is 2400 metric tonnes per annum. The plant has been set up at a cost of Rs 82 crore.

Infosys announced a strategic partnership with EI Paso Water (EPWater), a municipal utility in EI Paso, Texas, to transform its legacy customer information systems (CIS) with Oracle Utilities Customer to Meter (C2M). As part of this engagement, Infosys will leverage its Preconfigured Accelerator for Customer Experience (PACE), to digitize EPWater’s customer engagement and billing platforms.

Doubts over US stimulus measures, and strength in the Dollar Index, are keeping gold prices lower, although “no deal Brexit” concerns, along with the worsening covid pandemic situation, are likely to keep gold prices firm.

Uncertainty regarding the passage of a U.S. pandemic relief package is keeping gold prices lower. Bipartisan talks on a $908 billion pandemic relief package have stalled, and are hung up on differences.A “no-deal Brexit” is also likely to support precious metals. U.K. Prime Minister, Boris Johnson, has said on Friday that a “no-deal Brexit” at the end of the year now looks "very, very likely."

Concerns over the pandemic are providing support to precious metals. The overall number of global coronavirus cases has topped 72.2 million, while the deaths have surged to more than 1.61 million (according to a Johns Hopkins University report).Gold prices are likely to find support at the 200-days EMA at $1,818 per ounce, while key resistance is likely to be seen around $1,905 per ounce -$1,958 per ounce.

A fresh subcontract with M/s Posh India Offshore Pvt Ltd, Indian arm of Posh Group, has been signed for doing jobs in Mumbai High Offshore in the current working season ending May 2021. The additional value of the contract is about USD 7,435,765 exclusive of GST.

The construction arm of L&T has secured orders from prestigious clients for two of its businesses.

Wholesale price inflation inched up to 1.55% y/y in November, which was lower than the consensus expectation. The slight increase in wholesale prices comes against a backdrop of perishable food prices reaching a near-term peak, while energy prices also rose at the margin. Pulses and other non-food articles saw the largest sequential rises, while fruits and vegetables saw sharp price declines.

We see signs of the rises in perishable food prices easing, but think downside in non-perishable food prices is likely to be limited. Modest increases in minerals and iron ore prices are also feeding into headline WPI inflation, and negating the drop in energy prices seen in the past few months.

Indian rupee is trading higher at 73.56per dollar, amidbuying seen in thedomestic equity market.It opened flat at 73.64 per dollar against Friday's close of 73.65.