Taking Stock | Market rallies for 2nd day; Nifty tops 18,100, Sensex rises 361 pts led by metals
On the BSE, the Metal index gained 4.5 percent, while capital goods, oil & gas, power and realty indices rose 1 percent each.... Read More
| Index | Prices | Change | Change% |
|---|---|---|---|
| Sensex | 82,102.10 | -57.87 | -0.07% |
| Nifty 50 | 25,169.50 | -32.85 | -0.13% |
| Nifty Bank | 55,509.75 | 225.00 | +0.41% |
| Biggest Gainer | Prices | Change | Change% |
|---|---|---|---|
| IndusInd Bank | 755.25 | 20.95 | +2.85% |
| Biggest Loser | Prices | Change | Change% |
|---|---|---|---|
| Trent | 4,891.00 | -119.50 | -2.38% |
| Best Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty PSU Bank | 7451.10 | 80.15 | +1.09% |
| Worst Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty FMCG | 55281.55 | -725.20 | -1.29% |
Nifty moved higher at the end of a volatile trading session, adding 0.65% to the previous closing. On the daily chart, the rally stopped at the 50EMA.
As long as it remains above 18,070, the trend appears to be positive. On the higher end, the index may move up towards 18,350. Support on the lower end is placed at 18,070/17,950.
The Bank Nifty index witnessed buying from the lower level and the bulls managed to hold the support of 42,400. The index on the upside immediately faces a hurdle at 43,000 where the highest open interest is built up on the call side.
The index remains in a buy-on-dip mode and might continue to trade in the broad range of 42,000-43,000. The index on a sustainable move above 43,000 will witness a sharp short covering towards the 44,000 mark.
Markets gained over half a percent in a range bound session, tracking firm global cues. After the initial uptick, the Nifty surrendered all the gains in no time however buying in select index majors pushed the index to the day’s high again as the day progressed. Consequently, it settled at 18,123 levels; up by 0.6%.
Most sectors participated in the move wherein metal outshined the others as it gained over 4%. Besides, further recovery in the broader indices eased the pressure.
Recovery in the global indices, especially in the US, is offering the respite in absence of any major domestic trigger. The recent buoyancy in the banking pack combined with a recovery in the select index majors is encouraging however Nifty has multiple hurdles to cross before resuming the uptrend. We thus reiterate our view to focus on stock-specific opportunities and maintaining positions on both sides.
With strong support from global peers, the domestic market is attempting to recoup its previous week's losses. Metal stocks shone amid hopes of a demand revival in China on reports of loosening COVID restrictions. This, along with fears over supply disruptions from winter storms in the US, resulted in oil prices rising.
Market is driving some comfort from the absence of any negative news from the global front. Valuations are slightly looking better after the recent spate of corrections, hence investors are resorting to value buying in the run up to the current month F&O expiry.
Technically, after a promising reversal formation the market held the uptrend formation throughout the day. The higher bottom intraday formation is indicating the continuation of a pullback rally in the near future.
For the trend following traders, 18,000 would act as a sacrosanct support level, above which the index could move up to a 50-day SMA (Simple Moving Average) or 18,220. In case of any further upside, the index could move up to 18,300.
Month-end dollar demand from oil importers and year-end rebalancing foreign fund outflows weighed on the Indian rupee in today’s trade as it surrendered Monday’s gain. The surge in crude and precious metal prices also weighed on the local unit.
Broadly speaking, the rupee has been stuck in the range of 82.40 to 82.90, lacking the directional move ahead of year-end.
In the near term, the rupee is expected to trade between 82.40 to 82.90 against the dollar. The bias for the local currency remains weak as long as it trades below 82.40.
Indian rupee closed 21 paise lower at 82.86 per dollar against previous close of 82.65.
: Benchmark indices ended higher on December 27 with Nifty above 18,100 amid buying across the sectors barring FMCG.
At Close, the Sensex was up 361.01 points or 0.60% at 60,927.43, and the Nifty was up 117.70 points or 0.65% at 18,132.30. About 2504 shares have advanced, 889 shares declined, and 120 shares are unchanged.
Hindalco Industries, Tata Steel, JSW Steel, ONGC and Tata Motors were among the biggest Nifty gainers. However, losers included HUL, Apollo Hospitals, Nestle India, ITC and NTPC.
Except FMCG, all other sectoral indices ended in the green.
The BSE midcap index rose 0.8 percent and smallcap index added 1.4 percent.
The public issue of Radiant Cash Management Services continued to see muted response from the launch. It received bids for 96.54 lakh shares as against an offer size of 2.74 crore shares, or just about 35 percent subscription till December 27, the final day of bidding.
Retail investors have bought 18 percent shares of the allotted quota, and a part set aside for high networth individuals has been subscribed 19 percent. Qualified institutional buyers have bid for 77 percent shares of the reserved portion.
Oil hit a three-week high on Tuesday as China's latest easing of COVID-19 restrictions spurred hopes of a fuel demand recovery, with further support coming from cuts to U.S. energy production caused by winter storms.
China will stop requiring inbound travellers to go into quarantine, starting from Jan. 8, the National Health Commission said on Monday in a major step towards easing curbs on borders that have been largely shut since 2020.
Brent crude was up 22 cents, or 0.3%, at $84.14 a barrel by 0911 GMT and U.S. West Texas Intermediate crude gained 7 cents to $79.63. Both benchmarks hit their highest since Dec. 5 earlier in the session.
