Taking stock | Banks, financials lift Sensex, Nifty a percent higher
Powered by banking stocks and positive global cues, benchmark indices Sensex and Nifty started the January futures and options series with strong gains.
Ajit Mishra, VP - Research, Religare Broking Ltd.
We expect the prevailing consolidation to extend further in the index with the bias on the positive side. Stocks, on the other hand, would continue to see movement on both sides thus traders should focus more on stock selection. Nifty has the next critical hurdle at 12,400. Though we’re seeing participation from across the board, private banks, financials and auto may outshine the others in the near future so plan your trades accordingly.
Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas:
The Nifty rebounded sharply on Friday post a minor degree correction in the last couple of sessions. This shows that the underlying tone for the market continues to be bullish. Participation was seen in the broader market as well, which augurs well for the overall rally in the market. On the weekly chart, Nifty has formed an Inside bar. The breakout level for the bar pattern is at 12294. Thus traders can initiate a fresh long position once the swing high of 12294 gets taken out. On the higher side, 12350-12400 will be the key short term target area to watch out for. On the flip side, the support zone now shifts higher to 12,150-12,100.
Vinod Nair, Head of Research at Geojit Financial Services:
State- run banks helped market to trade higher after consecutive days of weakness. Another announcement of bond sale next week from the central bank lifted the financial stocks higher while positive sentiments in global markets on easing trade concerns fuelled a broad based rally. Investors to stay focused on continuity of government policies and given liquidity is solid, momentum is expected to shift from premium stocks to value stocks.
Rahul Gupta, Head of Research- Currency , Emkay Global Financial Services:
The USD/INR spot has been trading in a tight range of 71-71.40 amid holiday season, and we expect thin and lackluster movement to continue even next week. The positive sentiments regarding US-China Phase-One trade deal will go on until there is any contradictory news from the US. 71 will continue to act as a strong support, while 71.40 will be a strong resistance.
Sanjeev Zarbade, VP PCG Research, Kotak Securities:
Global markets continued to stay positive in the current week on the back of progress on the first phase of trade deal between the US and China. However, the Sensex closed marginally lower on profit booking and absence of any positive data-point or government announcements despite strong overseas fund flows. Sun Pharma, Reliance Industries and ITC were the top losers in the BSE-30 Index, while Hero Motocorp, Tata Steel and Titan were the top gainers.
On the political front, the ruling party lost another state elections in Jharkhand. FPIs bought equities worth USD 758 mn over the past five trading sessions while DIIs sold USD 610 mn worth of equities in the same period. Crude prices have started to firm up and are now trading at USD 68 per barrel. Given the current sluggish economic growth, if the crude prices continue to rise, then it may weigh down on the market sentiment.
Amit Shah, Technical Research Analyst with Indiabulls Ventures:
Bull's clawback strongly after the profit booking witnessed in earlier session on the day of expiry. Market breadth was healthy as mid and small caps continue to perform on a sustainable basis. All sectoral indices were in the green. Overall Nifty continues to remain in a strong uptrend and we maintain our target of 12,400-12,450 zone. Near term support for the index is placed at 12,100 and dips should be utilized to build long positions. Support at 12,100-12,000 and resistance at 12,300-12,400.
Market Close: Benchmark indices broke the three day losing streak as buying across the sectors helped the indices to close near the day's high level on December 27.
At close, the Sensex was up 411.38 points or 1.00% at 41575.14, while Nifty was up 119.30 points or 0.98% at 12245.80. About 1495 shares have advanced, 1019 shares declined, and 163 shares are unchanged.
Coal India, Axis Bank, BPCL, SBI and Power Grid Corp were among major gainers on the Nifty, while losers include Yes Bank, Wipro, Britannia Industries, Kotak Mahindra Bank and Bharti Infratel.
All the sectoral indices ended higher led by the PSU bank, infra, energy, auto, metal, IT and pharma.
ITD Cementation locked at upper circuit: ITD Cementation India share price locked at 5 percent upper circuit on December 27 after company received a letter of intent for engineering, procurement and construction (EPC) of Container Berth, Backup Yard Phase - I, Building and Utilities for Adani Yangon International Terminal Company Limited in Myanmar aggregating to USD 80 million.
LT Foods inaugurates manufacturing facility: Daawat Kameda India Private Limited, a 51:49 Joint Venture( JV) between LT Foods and Kameda Seika, Japan has inaugurated a manufacturing facility in Sonipat as on December 27, 2019
BHEL commissions first unit of Baira Siul Hydro Project: Bharat Heavy Electricals has successfully renovated and modernised one unit of the 3x60 MW Baira Siul Hydro Power in Himachal Pradesh.
LIC cuts stake in L&T: Life Insurance Corporation has cut its stake in the company by 2.01 percent to 14.25 percent from June 11 to December 25, 2019.