Closing Bell: Market bounces back with Nifty above 14,500, Sensex gains 834 pts

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The market has formed complete reversal formation by closing above the highest of the previous day, which was at 14,459/49,122. Today, all the sectors closed in positive territory. The market breadth was extremely encouraging. Unusual surge in the Hang Seng helped other Asian markets to trade higher. Along with Asian markets, today’s performance of US markets would decide the next course of action for our markets.

The market is heading for 14,580/49,600 levels, which is a crucial hurdle point for the market. On the decisive break of 14,580/49,600 levels, it would result in retesting of 14,650/49,800 levels, which is an all-time highest level. On the downside, 14,450/49,100 and 14,350/48,800 would be major supports. The focus should be on commodities and pharmaceutical stocks.

The bulls were back in action as the markets gained nearly two percent and settled around the day’s high as well. After two days of slide, the benchmark opened higher, in response to an optimistic statement from US Secretary of Treasury, Janet Yellen, about a big fiscal push in the US. The momentum further gained strength as the session progressed, with healthy buying across sectors. Consequently, the Nifty ended at 14,521 levels; up by 1.7%. The broader markets too posted decent gains in the range of 1.6-2.3%. Amongst the sectors, all the indices ended in positive with realty, metals and capital goods were the top gainers.

Going ahead, earnings and global cues would remain on the participants’ radar. Besides, we’re also seeing noticeable buzz across the sectors in run up to Budget. We feel it would be prudent for the markets to spend some time around the current levels. Meanwhile, there’ll be no shortage of trading and investment opportunities, thanks to prevailing earnings season and upcoming budget. Amid all, we suggest not to go overboard and stick to the quality names and accumulate them on dips.

Indian rupeeended near the day's high levelat 73.17per dollar, amid strong buyingsawin the domestic equity market.It opened 11 paise higher at 73.17 per dollar against previous close of 73.28 and 73.13-73.30.

Markets begun on a positive note supported by global cues with Janet Yellen calling for a much larger stimulus to bolster the US response to the pandemic. However, the afternoon trade took even the Cricket Enthusiast by surprise as bulls went on a rampage as we saw big moves in Bajaj twins coupled with hopes of positive MSCI flows next month. FPI inflows of Rs 175 bn this month and hopes of strategic divestment have pushed bears on the back foot.

The Nifty has closed around its resistance area of 14,550-14,600. If we manage to get past that level, we should be headed to 14,800-14,900. The index has made a strong base at the 14,200 level which acted as a good support. Keeping a close below this level as a stop, traders can initiate long positions for higher targets.

Bulls took control after two days of massive selloff, tracking positive cues from Asian markets and in expectation of a bigger US stimulus to keep the liquidity alive. Buying was seen across sectors with realty and PSU Banks outshining. The current market will get further boost by foreign inflow if additional US stimulus kicks in. However, recent volatility in the market has increased due to concerns over high valuations and bond yields, investors should be watchful.

The market witnessed a strong pullback rally after a few sessions of continuous correction while sustaining and closing above 14,400 would be a key factor in the market for the rally to continue. The market is aligned to be in a range-bound movement between the levels of 14,180-14,680. A decisive breakout above the zone of 14,680-14,700 could lead to an improvement in market breadth, and a rally till the levels of 14,850-14,870.

After two days of selling market bounce back strongly with Sensex adding over 800 points and Nifty above 14,500.

At close, the Sensex was up 834.02 points or 1.72% at 49,398.29, and the Nifty was up 239.90 points or 1.68% at 14,521.20. About 2077 shares have advanced, 861 shares declined, and 139 shares are unchanged.

Bajaj Finserv, Tata Motors, Bajaj Finance, HDFC and Hindalco Industries were among major gainers on the Nifty, while losers were Tech Mahindra, ITC, Wipro, M&M and Britannia Industries.

All the sectoral indices ended in the green. BSE Midcap and Smallcap indices added 1.5-2.3 percent.

Company's net profit was up at Rs 132.1 crore versus Rs 52.8 crore and revenue was up 26.1% at Rs 2,221.3 crore versus Rs 1,762 crore, YoY.

Its earnings before interest, tax, depreciation and amortization (EBITDA) rose 78.8% at Rs 327.7 crore versus Rs 183.2 crore and EBITDA margin was at 14.7% versus 10.4%, reported CNBC-TV18.

The public offer of Indian Railway Finance Corporation has been subscribed 1.01 times on January 19, the second day of bidding, largely supported by retail investors so far.

The IPO has received bids for 126.7 crore equity shares against offer size of over 124.75 crore equity shares (excluding anchor book portion), the subscription data available on the exchanges showed.

The portion set aside for retail investors witnessed subscription of 1.95 times and that of employees 18.27 times, while the reserved portion of non-institutional investors was subscribed 17.4 percent and that of qualified institutional buyers 0.02 percent.

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The tyre sector is one of few, whose operating profits are expected to register growth this year, surpassing pre-covid levels, despite lower volume. Higher realisations and benign input prices will help offset the impact of 4-6% volume decline, and enable a 6-8% growth in operating profits for tyre manufacturers in fiscal 2021.

That, along with phased implementation of capital expenditure plans, will ensure stable credit outlook for tyre manufacturers. This is based on CRISIL Ratings’ analysis of India’s top six tyre manufacturers, accounting for ~80% of the Rs 60,000 crore automobile tyre sector revenue.

The sector derives 28% of its volume (in tonnage terms) from original equipment manufacturers (OEMs), 58% from the replacement market, 10% from exports, and the rest from imports.