After staying in a range for the two sessions in a row, the bulls took charge of Dalal Street on the last day of the year 2021 and ended with nearly a percent gain amid mixed global cues.
The market started the January series on a strong note and extended the gain as the day progressed, ending near the day's high amid buying across the sectors.
At close, the Sensex was up 459.50 points or 0.80% at 58,253.82, while the Nifty was up 150 points or 0.87% at 17,354.
In the last week, BSE Sensex jumped 1,129.51 points (1.98 percent) to end at 58,253.82, while the Nifty50 rose 350.25 points (2 percent) to close at 17,354 levels.
"2021 witnessed strong recovery amid continuing challenges from subsequent variants and ended positive today. India outperformed most global peers supported by robust retail participation, economic recovery, vaccine coverage, and a rising appetite for Indian goods & services," said Vinod Nair, Head of Research at Geojit Financial Services.
"Despite lingering fears surrounding surging Omicron cases, the domestic market is expected to maintain its resilience supported by healthy long-term growth forecast & reforms undertaken," he added.
Hindalco Industries, Titan Company, UltraTech Cement, Tata Motors, and Kotak Mahindra Bank were among the top Nifty gainers. Losers included NTPC, Cipla, Tech Mahindra, Power Grid Corp, and Infosys.
On the sectoral front, Nifty Auto, Bank, FMCG, Metal, and PSU Bank indices gained 1 percent each.
Broader indices outperformed the main indices with BSE midcap and smallcap indices rising over 1 percent each.
Stocks and sectors
All the sectoral indices ended higher with BSE Auto, Bankex, FMCG, Metal, Oil & Gas, and Realty indices gaining 1-2 percent.
A long build-up was seen in Vodafone Idea, Indiabulls Housing Finance, and Ramco Cements, while there was a short build-up in RBL Bank, City Union Bank.
More than 400 stocks, including Sun Pharma, KPIT Technologies, and AURIONPRO SOLUTIONS, hit a 52-week high on the BSE.
Technical View
The Nifty has crossed its 50 DEMA along with the formation of a bullish candle on a daily and weekly scale.
"The Nifty has to hold above 17,350 zones, for an up move towards 17,500 and 17,777 zones whereas support shifts higher to 17,250 and 17,100 zones," said Chandan Taparia, Analyst-Derivatives, Motilal Oswal Financial Services.
Market performance in 2021
BSE Sensex and Nify50 rose more than 20 percent in the year 2021, hitting fresh record highs of 62,245.43 and 18,604.45, respectively, on October 19, 2021.
However, BSE Midcap and Smallcap indices have outperformed the main indices with a gain of 37 percent and 61 percent, respectively.
On the sectoral front, all the indices ended in the green with BSE Power and Metal indices gaining over 60 percent, while BSE IT, Realty, and Capital Goods indices gave a return of over 50 percent.
Outlook for January 3
Palak Kothari, Research Associate at Choice Broking
The index has been trading above 21 & 50-HMA which suggests strength in the counter. However, A momentum indicator STOCHASTIC & MACD trading with a positive crossover on the daily time-frame.
At present, the index has support at 17,150 levels, while resistance comes in at 17,450 levels, and breaching above the same can show 17,550-17,700 levels. On the other hand, Bank Nifty has support at 34,800 levels while resistance is seen at 35,800 levels.
Mohit Nigam, Head - PMS, Hem Securities
The overall structure looks positive for Nifty50 as it manages to sustain well above 17,200 levels on a closing basis for the last few sessions which is a positive sign for the index technically and we believe we can witness 17,500 levels in the near term.
17,200 and 17,500 are immediate support and resistance in Nifty. For Bank Nifty, 35,000 and 36,000 are immediate support and resistance levels.
Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities
In the near future, as long as the index is holding 17,200 or 20-day SMA, the chances of hitting 17,550-17,600 are bright. Further upside may also continue which could lift the index up to 17,725-17,800 levels.
On the flip side, a close below 20-day SMA could see Nifty fall to 17,050-16,950.
Meanwhile, after a short-term correction, the Bank Nifty has formed a promising reversal formation near 34,500. The structure suggests 35,000 and 34,500 would be the sacrosanct supports for the index, and above the same, the uptrend momentum is likely to continue till 36,000-36,500.
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