CLOSING BELL | Sensex, Nifty end higher amid volatility; FMCG gains, banks drag

Taking Stock | Sensex, Nifty End Higher For The Third Day; FMCG Stocks Gain

Broader indices outperformed the benchmarks, with the BSE midcap index rising 0.38 percent and smallcap index gaining 0.80 percent

Markets oscillated in a range on the weekly expiry and finally ended marginally higher. Initially, the benchmark opened positive amid supportive global cues but gains fizzled out due to profit booking in banking, IT and realty pack. As the day progressed, healthy buying in FMCG, media and metals helped markets to recover. Finally, the Nifty ended the volatile session higher by 0.3% at 17,517 levels. The broader markets too ended with positive bias in the range of 0.6-1.2%.

All eyes will be on crucial macro data (CPI & IIP) outcome which may further provide some direction to the markets. Meanwhile, the focus will remain on the global cues and updates regarding the new variant. We reiterate our cautious yet positive stance on the markets and suggest traders to focus on managing risk.

The positive baton from last two trading sessions’ passed on to today’s trade but digging deeper Nifty wobbled and traded choppy. There was some sense of discomfort whenever Nifty swigged higher — a sense of discord was clearly seen amongst investors’ camp. Technically, the Omicron covid virus will lose its punch if Nifty scales above 17607 mark.

Expect an up-and-down session in tomorrow’s trade with all bullish eyes on Nifty’s major hurdles at 17607 mark. Please note, confirmation of strength only on any close above 17607 mark.

Despite witnessing a choppy trading session, the markets maintained their positive momentum as investors put money in the beaten down stocks. After the post morning selloff, the Nifty took the support near 17400 and reversed sharply to hover between 17425- 17535 levels.

On daily charts, the index has formed a Hammer candlestick formation which indicates indecisiveness between bulls and bears. The short-term formation is still on the bullish side but before any fresh breakout, the market may consolidate within the range of 17350 to 17575.

However, 17350 would be the trend decider level and if the index slips below the same, the uptrend would be vulnerable.

Indian equity market witnessed increased volatility after two days of strong momentum. However benchmark indices managed to close the day in gains for 3rd consecutive session. While Nifty and Sensex closed with gains of around 0.3%, broader market outperformed with midcap index up 0.6% and smallcap index gaining 1.2%. Profit booking was witnessed in private banks, IT, financial services and reality sectors. On the positive side were media, FMCG, oil & gas, and auto.

Market has seen good recovery in the last three days as buying emerged at lower levels with the comfort of lower valuation and receding fears of Omicron virus.

We expect the market to consolidate at current levels for the next few days after moving up sharply. The overall structure to remain positive, hence suggest trades to maintain buy on dips strategy.

Star health insurance, the largest private-sector health insurance company gets poor response due to expensive valuations, dent in profitability due to covid19 and fragile sentiments post a weak listing of Paytm.

The listing is expected on a poor note however the long-term outlook for the industry and Star health insurance is promising therefore we can expect buying interest at lower levels.

Benchmark Indices was in the volatile territory in the early session but later ended in the positive zone. The Nifty crossed 17500 levels.

The RBI monetary policy on Wednesday continues to push for growth while keeping an eye on price stability and with this important announcement, Indian markets may look to global markets in the near term for the next movement. Global markets seem to be on an upswing, as Covid fears dissipate. Immediate support and resistance for Nifty 50 is 17180 and 17700 and for Bank Nifty is 36600 and 37500.

The Nifty witnessed a tough battle between the bulls & the bears near the key hurdle zone of 17500-17600. With the recent bounce, the index has reached its crucial daily moving averages, which acted as a cap for the day.

17500-17600 had acted as a strong resistance in the recent past that had induced the bears into action. Thus it is vital to monitor the price action over here. If the Nifty crosses the level of 17600 on a closing basis then it will allow the index to march further towards 18000.

On the other hand, failure to hold the ground over here will push the index down to 17300-17250 in order to fill up a recent gap area on the daily chart.

Domestic indices surrendered to profit booking in the early session but later gained ground owing to positive global sentiments.
Investors are keenly awaiting the US inflation data in order to gauge the Fed’s decision on rolling back economic stimulus.

Easing fears over the Omicron variant continue to temper optimism in the markets. Gains in FMCG and consumer durables were offset by losses in Oil & Gas and healthcare.

Benchmark indices ended on positive note amid volatility on December 9 with above 17500.

At close, the Sensex was up 157.45 points or 0.27% at 58,807.13, and the Nifty was up 47 points or 0.27% at 17,516.80. About 2046 shares have advanced, 1153 shares declined, and 115 shares are unchanged.

ITC, L&T, Asian Paints, UPL and Reliance Industries were among the top Nifty gainers. Losers included HDFC Bank, Titan Company, Nestle India, NTPC and Power Grid Corporation.

Except bank and realty all other sectoral indices ended in the green, with FMCG, oil & gas and capital goods indices adding 1 percent each. BSE midcap and smallcap indices ended in the green.

The public offer of CE Info Systems, a data and technology products and platforms company, has received bids for 99.81 lakh equity shares against IPO size of 70.44 lakh equity shares, subscribed 1.42 times on December 9, the first day of bidding.

Retail investors have bought 2.55 times of their reserved portion, and non-institutional investors have put in bids for 33 percent of shares set aside for them.

Qualified institutional buyers' reserved portion was subscribed 25 percent.