Closing Bell: Sensex, Nifty end higher amid volatility; oil & gas, metal, banks gain

Markets traded volatile and ended marginally higher amid mixed cues. The beginning was upbeat however profit-taking at higher levels trimmed the gains as the day progressed. Finally, the Nifty ended higher by 0.4% to close at 17,812.70 levels.

A mixed trend was witnessed on the sectoral front wherein FMCG, energy and IT posted gains while auto and pharma ended subdued. Meanwhile, the broader indices managed to inch higher and gained in the range of 0.4-0.6%.

Markets are likely to consolidate further after the recent surge and it would be healthy. Meanwhile, volatility is likely to remain high, citing mixed global cues and COVID-related updates. Besides, upcoming macroeconomic data (IIP, CPI, and WPI) and the beginning of the earnings season could further add to the choppiness.

We recommend continuing with a positive yet cautious approach and preferring hedged positions.

Post a correction from mid Oct to mid Dec, the Nifty continued with its recovery process for the third consecutive week. On the way up, it has crossed certain crucial short term hurdles. In terms of the Fibonacci retracement, it has retraced 61.8% of the entire decline.

For the last couple of sessions, the index is consolidating near this key Fibonacci level. The hourly Bollinger Bands have become flat thus suggesting that the consolidation can continue for some more time. The overall structure shows that this is a healthy consolidation, which will prepare the setup for the next up move.

So for the next few sessions, sideways action can take place in the range of 17650 – 18000. On the downside, 17650-17600 will provide cushion for any minor degree dip whereas on the higher side, 18000 mark is expected to keep the rise in check for the short term.

Domestic equity markets started 2022 on a strong note with majority indices moving in the north direction this week. Despite rising covid cases in India and globally, the markets moved higher as the severity of Omicron variant seems to low. BSE 30 and NSE 50 index inched up by 2.6% each during the week.

After witnessing correction in recent weeks, BSE Bankex index staged a strong comeback with returns of 6.5% in this week. Defensives like BSE IT and BSE Healthcare gave negative returns during the week.

FII turned out to be net buyer in the January month till date. The 10 year US treasury yield moved higher during the week and crude oil prices (Brent crude) increased beyond the USD 80 mark and is inching closer to the October 2021 highs.

Inflation concerns, higher interest rate scenario and increasing covid cases are some of the challenges for the market. Domestic markets over the next one month will closely track the upcoming quarterly results and the Union Budget.

The hawkish Fed minutes didn’t have a desired impact on USDINR spot and instead of appreciating it is still flat hovering around 74.50 zone. The focus is on tonight’s US NFP data for guidance on trajectory.

A set of solid job data, in particular wage growth, may likely push the USDINR spot higher, but a dismal data would weigh on spot, pushing it below 74 zone next week. So broadly we expect the USDINR spot to trade within 73.85-75 range.

It was a volatile day, after a positive opening index made an intraday high at 17905 level but showed profit booking from a higher level as made intraday low at 17704.55 levels and managed to close the session at 17812.70 level with a gain of 66.80 points.

On the technical front, the index has been trading with higher high & higher low formation on a weekly chart as well as formed open marubozu candlestick which suggests an upside rally in the counter. On a four hourly chart, index has formed a hammer kind of candlestick pattern which adds bullish momentum for upcoming sessions.

Moreover, the index has been trading above 21 & 50-HMA which suggests strength in the counter. However, a momentum indicator MACD trading with a positive crossover on the daily time-frame. At present, the index has support at 17500 levels while resistance comes at 18000 levels, crossing above the same can show 18200-18300 levels. On the other hand, Bank Nifty has support at 36800 levels while resistance at 38300 levels.

: Benchmark indices ended on positive note on January 7 in the volatile session.

At close, the Sensex was up 142.81 points or 0.24% at 59,744.65, and the Nifty was up 66.80 points or 0.38% at 17,812.70. About 1910 shares have advanced, 1235 shares declined, and 78 shares are unchanged.

Grasim Industries, ONGC, Hindalco Industries, HDFC Life and Shree Cements were among the top Nifty gainers. Losers were M&M, Bajaj Finserv, L&T, Bajaj Finance and HDFC.

On the sectoral front, Bank, metal, FMCG, Oil & gas indices up 0.5-1 percent, while selling was seen in the Auto, Capital Goods and Pharma names. BSE midcap and smallcap indices ended in the green.

Foreign research firm UBS has maintained buy rating on SRF with a target at Rs 3,000 per share.

It forecast an earnings upgrade, led by strong outlook in specialty chemicals & refrigerant gas.

It expect packaging & technical textiles may deliver better profitability and expect company to beat management's specialty chemicals revenue guidance of 15-20% in FY22.

Ujjivan Small Finance Bank share price jumped over 8 percent intraday on January 7 after the company reported 22 percent year-on-year growth in its loan book for the quarter ended 31 December.

The lender's gross loan book rose 22 percent to Rs 16,600 crore as on Q3FY22 as against Rs 13,600 recorded on the same quarter of previous year. Sequentially, the loan book grew 15 percent from Rs 14,500 crore as on 30 September 2021, the bank said.

Total deposits aggregated to Rs 15,600 crore as on December 31, 2021, up 34 percent YoY and up 10 percent QoQ.

CLSA has kept sell rating on Macrotech Developers with target at Rs 1,000 per share.

The pre-sales guidance of Rs 9,000 crore would require very strong performance in Q4. Its net debt declined sharply to Rs 990 crore, is in-line with expectations.

The UK business has done well in terms of sales of £ 191 million in Q3 and CLSA believes its current valuation prices in a blue sky scenario, leaving no upside potential.

Oberoi Realty is a real-estate company, focusing on the MMR region. Company having business vertices of residential and commercial real-estate.

Company has reported a strong set of numbers in Q2FY22, we expect residential real-estate growth momentum to continue for the next couple of quarters as in Q3FY22 company has launched Elysian Tower B in Goregaon along with this upcoming launch of Thane.

With a diversified revenue mix, the company owns Oberoi Mall (0.5 msf), Commerz (1.1 msf) and the west in hotel (269 room keys). We expect occupancy levels to improve in CY2022.

Company having Robust launch pipeline in FY23, company expects to launch Thane residential project in Q4FY22 along with this Borivali project. We have seen good consolidation across India towards top-10 players. Top-10 players now hold 11.2% market share as compared to 5.4% in 2017. We believe that top-10 players will continue to gain market share. We have a buy rating on Oberoi Realty.

Tata Consultancy Services (TCS) has been selected by the Ministry of External Affairs (MEA), Government of India for the second phase of the immensely popular Passport Seva Program, company said in its release.

In the next phase of the program, TCS will refresh existing facilities and systems, and develop innovative new solutions to enable the issuance of e-passports and further enhance the citizen experience using technologies such as biometrics, artificial intelligence, advance data analytics, chatbots, auto-response, natural language processing, and the cloud, it added.

Tata Consultancy Services was quoting at Rs 3,847.80, up Rs 40.95, or 1.08 percent on the BSE.

CRISIL Ratings Limited (the Credit Rating Agency) has the Credit Ratings for both long-term and short-term debt of the Company as
'CRISIL AA- and CRISIL A1+' respectively.

However, the outlook on the rating has been revised from 'Stable to 'Watch with Developing Implications'

Ashoka Buildcon was quoting at Rs 103.45, down Rs 1.65, or 1.57 percent on the BSE.

Benchmark indices were trading flat amid volatility in the final session of week.

The Sensex was down 20.23 points or 0.03% at 59581.61, and the Nifty was up 21.30 points or 0.12% at 17767.20. About 1894 shares have advanced, 1243 shares declined, and 79 shares are unchanged.