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Taking Stock | Market ends higher amid volatility; IT, pharma and realty stocks gain

Broader indices, too, ended higher, with the BSE midcap index rising 0.27 percent and smallcap index adding 0.52 percent

December 27, 2021 / 04:41 PM IST

Indian benchmark indices erased the losses of the previous session and ended higher on December 27 supported by information technology, pharma, financial and realty stocks.

At close, the Sensex was up 334.86 points, or 0.59 percent, at 57,459.17, and the Nifty was up 92.50 points, or 0.54 percent, at 17,096.30.

The market started on a weak note but the indices manage to recover the losses as the session progressed to close near the day's high amid volatility.

"Despite spiking Covid cases globally, the domestic market took a rebound post its weak opening, factoring the low mortality rate of the new variant. Gains in pharma, IT and finance were the major sectorial contributors to the market recovery," said Vinod Nair, Head of Research at Geojit Financial Services.

Asian markets traded mixed backed by Chinese central bank’s pledge of supporting measures, while the US and European indices traded flat amid wounded risk sentiments owing to rocketing Omicron cases, he said.

Close

Broader indices mirrored the benchmarks and ended higher. The BSE midcap index rose 0.27 percent and the smallcap index added 0.52 percent.

Tech Mahindra, Cipla, Dr Reddy’s Laboratories, UPL and Kotak Mahindra Bank were among the top Nifty gainers.

Losers were Hindalco Industries, Britannia Industries, IndusInd Bank, ONGC and Grasim Industries.

IndexPricesChangeChange%
Sensex54,326.391,534.16 +2.91%
Nifty 5016,266.15456.75 +2.89%
Nifty Bank34,276.40960.75 +2.88%
Nifty 50 16,266.15 456.75 (2.89%)
Fri, May 20, 2022
Biggest GainerPricesChangeChange%
Dr Reddys Labs4,249.10319.65 +8.13%
Biggest LoserPricesChangeChange%
Shree Cements22,001.20-215.15 -0.97%
Best SectorPricesChangeChange%
Nifty Metal5706.35230.10 +4.20%
Worst SectorPricesChangeChange%
Nifty IT28789.40437.25 +1.54%

The Nifty pharma index added over a percent, while Nifty Bank and IT indices were up 0.5 percent each.

Stocks and sectors

On the BSE, except metal, all sectoral indices ended higher, with bank, healthcare and realty indices rising 0.5-1.5 percent.

Among individual stocks, a volume spike of more than 400 percent was seen in Zee Entertainment Enterprises, RBL Bank and Navin Fluorine International.

A long build-up was seen in Delta Corp, Jubilant Foodworks, and Aurobindo Pharma, while there was a short build-up in RBL Bank, United Breweries and Zee Entertainment Enterprises.

More than 300 stocks, including MTNL, Indowind Energy, GMR Infrastructure, hit a 52-week high on the BSE.

Technical View

The Nifty formed a bullish candle on the daily scale with long lower shadows indicating that buying was seen at support zones.

The Nifty has to hold above 17,000 for an up move towards 17,200 and 17,350, whereas support can be seen at 16,900 and 16,800 zones, said Chandan Taparia, Analyst-Derivatives at Motilal Oswal Financial Services.

Outlook for December 28

Palak Kothari, Research Associate, Choice Broking

On the technical front, the index has confirmed a hammer candle on the hourly chart, which suggests strength for upside in the counter.

Moreover, the index has been trading above 21 and50-HMA which suggests strength in the counter. Momentum indicator stochastic traded with a positive crossover on the daily time-frame.

The index has support at 16,800, while resistance comes at 17,180, crossing which can lead the index to 17,300-17,400 levels.

The Bank Nifty has support at 34,200 and resistance at 35,500.

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

The market closed well in the green despite opening gap down. The Nifty, however, couldn’t close above the resistance of 17,200-17300.

Until that happens, we cannot rule out a U-turn from the current juncture.

If the index gets past that resistance patch, we can conclude that the short-term weakness has been done with and long-term uptrend is resuming.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

We may see listless trading over the next few days as the year draws to a close unless some major global developments trigger sharp sideways movement.

The Nifty recovered sharply from the intraday low and also formed a strong bullish candle, indicating a strong possibility of continuation of the uptrend in the near future.

We are of the view that 17,000 would be the key level for the trend-following traders, above the same, the uptrend formation is likely to continue till 17,150-17,250.

On the other side, below 17000, the index can see another round of correction to 16,900-16,860 levels.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before making any investment decisions.

 



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Rakesh Patil
first published: Dec 27, 2021 04:41 pm
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