Closing Bell: Sensex, Nifty end higher on a volatile day; metals drag, IT gains

The Nifty continued to inch towards the 78.6% retracement of the October – December decline, which is near 18140. However, as the index is approaching the key Fibonacci level, the angle of ascent is decreasing. The near term momentum is weakening, which is evident from the hourly momentum indicator that is showing negative divergence near the overbought zone & is preparing for a downward cycle.

On the downside, lower end of a rising channel on the hourly chart now stands near 18000. If the Nifty breaches this support then it can slide down to test the key hourly moving averages & the hourly lower Bollinger Band. So keep an eye on this crucial support of 18000. From trading perspective, traders are recommended to avoid aggressive long positions at this level & can consider taking the profit off the table.

Markets ended marginally higher in a volatile session, tracking mixed cues. Initially, weak global cues were weighing on the sentiments however resilience in the IT majors not only capped the downside but also helped the index to inch higher. As the day progressed, index majors from other sectors also contributed to the move. Eventually, the Nifty index ended higher by 0.2% at 18,043 levels. Amongst the sectors, Power, IT and Realty ended with gains whereas Metal and Telecom ended with losses. Amid all, the broader indices ended flat, taking a breather after the recent surge.

We’re in the fourth week of rebound and now all eyes are on the earnings of three IT majors i.e. Infosys, TCS and Wipro for cues. We reiterate our positive yet cautious view on markets and suggest focusing more on sector/stock selection.

Bulls continued the positive momentum for the third day in a row as overnight gains in the US market and absence of any major negative news helped investors remain invested in selective sectoral stocks.

The Nifty is consistently forming higher bottom and higher top formation which suggests further uptrend. For the trend following traders, 16980 would be the trend decider level and above the same, the uptrend is likely to continue till 18100-18150.

On the flip side, a fall below 16980 could see the index retest 17900-17875 levels.

After a flat opening, index made an intraday low at 17964.40 levels and managed to close the session above 18000 marks at 18055.75 level with a gain of 52.45 points.

On the technical front, the index has been trading with higher high & higher low formation for the last three days and sustained above the falling trendline which suggests an upside rally in the counter. Moreover, the index has been trading above 21&50-DMA as well as a momentum indicator MACD & STOCHASTIC are trading with a positive crossover on the daily time-frame which suggests strength in the counter.

At present, the index has support at 17700 levels while resistance comes at 18100 levels, crossing above the same can show 18200-18300 levels. Bank Nifty has support at 37800 levels while resistance at 38800 levels.

The index has once again given a strong close. We should look forward to higher targets for the Nifty - 18400-18500 is a possibility.

A strong support lies at 17700 and as long as that holds, any corrective wave can be looked at strategically to accumulate long positions.

Domestic benchmark indices showcased a flattish trend with positive bias as the market weighed the expectations of a strong quarter amid concerns over rising cases, supply issue and inflationary pressure.

Global market was on the edge as Fed meeting minutes hinted at rate hikes, elevated US inflation and the awaited release of US CPI inflation data. Domestic inflation levels are also likely to be significant due to unfavourable base effect though food prices have declined during December.

Indian benchmark indices ended higher in the volatile session on January 11 led by the IT, power, realty stocks.

At close, the Sensex was up 221.26 points or 0.37% at 60616.89, and the Nifty was up 52.50 points or 0.29% at 18055.80. About 1757 shares have advanced, 1481 shares declined, and 55 shares are unchanged.

HCL Technologies, Adani Ports, ONGC, HDFC and Tech Mahindra were among the top Nifty gainers. Losers were JSW Steel, Tata Steel, BPCL, Hindalco Industries and Coal India.

Among sectors, metal index fell over 2 percent, while buying was seen in the IT, power, oil & gas and realty stocks. The BSE midcap and smallcap indices ended flat.

Long wait of Delhivery IPO over, company to come up with the IPO by the end of the month. Company has received the approval for IPO from SEBI. The total issue size of the IPO will be RS 7,460 crores, which comprises fresh issue of Rs 5000 crores and offer for sale of Rs 2,450 crores.

Delhivery Limited is one of the fastest growing fully integrated logistics companies, having a nationwide network with access to 17000 pin codes and having 21 automated sort centers.

Delhivery Limited is a well placed company for growing ecommerce demand in India, company has more than 21000 customers which includes e-commerce, Direct to home companies etc. On the financial front, the company has reported good growth in revenue but still not able to report a positive bottom line, company has reported revenue of Rs 3,838 crores and loss of Rs 4,155 crores in FY2021. This will be the first IPO of CY2022.

The board of directors of Adani Power, at its meeting held on January 11, 2022, has considered and approved the appointment of Mr. Shersingh B. Khyalia as a Chief Executive Officer of the company with effect from January 11, 2022.

Adani Power was quoting at Rs 106.80, down Rs 2.05, or 1.88 percent on the BSE.

Research firm Morgan Stanley has kept overweight call on DLF with a target at Rs 470 per share.

The company has launched its luxury housing project ‘one midtown’ in West Delhi. The project is a 50:50 joint development with sovereign fund, GIC.

It estimate Rs 4,200-4,500 crore revenue potential from West Delhi project, however channel checks suggest that the customer response has been good.

DLF was quoting at Rs 408.75, up Rs 0.95, or 0.23 percent on the BSE.

We wish to inform that as per latest State Government orders on account of COVID - Third Wave, Imagicaa Theme Park and Water Parkwill remain temporarily non-operational w.e.f January 10, 2022 till the Company receives appropriate orders to re-open, said Imagicaaworld Entertainment in the release.

Imagicaaworld Entertainment was quoting at Rs 10.81, down Rs 0.41, or 3.65 percent.

Benchmark indices were trading higher amid volatility in the final hour of trading.

The Sensex was up 193.30 points or 0.32% at 60588.93, and the Nifty was up 44.00 points or 0.24% at 18047.30. About 1764 shares have advanced, 1468 shares declined, and 55 shares are unchanged.