Taking Stock: Market bounces back; Sensex up 491 pts, Nifty at 21,650

Bajaj Finance, NTPC, ONGC, Tata Consumer and IndusInd Bank are among the top gainers on the Nifty, while losers included BPCL, LTIMindtree, Dr Reddy's Laboratories, HCL Technologies and Hero MotoCorp.

On the sectoral front, the Realty index was up 6.6 percent, the power index was up 2 percent, while bank, capital goods, healthcare and oil & gas index were up 0.5-1 percent.

BSE Midcap and smallcap indices were up 1 percent each and touched fresh record highs.

A long build-up was seen in Godrej Properties, DLF and Vodafone Idea, while a short build-up was seen in PVR INOX, Apollo Tyres and Navin Fluorine International.

Among individual stocks, a volume spike of more than 200 percent was seen in DLF, Oberoi Realty and Godrej Properties.

Today, more than 450 stocks touched their 52-week high on the BSE, including Bombay Burmah, Brigade Enterprises, Century Tectiles, DCM Shriram, DLF, Electrosteel Castings, Godrej Properties, Himadri Speciality Chemical, Kolte-Patil, Macrotech Developers, Max Healthcare, MTNL, Prestige Estate, Puravankara, Reliance Power, Sobha and Torrent Power. Click here for the full list

Outlook for January 5

Rupak De, Senior Technical Analyst at LKP Securities

The Nifty's swift recovery following two bearish days indicates continued dominance by the bulls in the market. The present sentiment suggests a promising trajectory towards 21800-21850 for the Nifty. If it surpasses 21850, we might anticipate a further climb toward 22000. Notably, the index appears to have a short-term support level around 21500. A downward shift would likely initiate only if it falls below this mark; until then, it seems favorable for buyers to take advantage of market dips.

Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas:

The Nifty opened gap up and traded with a positive bias throughout the day. It closed in the green after correcting for the previous couple of trading sessions. The fall in Nifty has halted around 21500 levels where multiple support parameters in the form of the 38.2% fibonacci retracement level and the lower end of the rising channel is placed.

We expect Nifty to hold on to this support and resume next leg of upmove. The hourly momentum indicator has triggered a positive crossover which is a buy signal. Thus, we shall expect the positive momentum to continue over the next few trading sessions.

Bank Nifty has held on to the support of the 20-day moving average (47920) and started the next leg of upmove. Until, 48000 is not breached on the downside we can expect the rally to continue. On the upside we expect 49500 from short term perspective.

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