The Indian benchmark indices ended higher for the second consecutive day on January 3 with the Sensex rising 126.41 points or 0.21% to end at 61,294.20, and the Nifty gaining 35 points or 0.19% to close at 18,232.50.
After a muted start, the market remained flat with a positive bias for the most part of the session. However, it witnessed some profit booking intraday but closed the session near the day's high levels.
"In the absence of major economic triggers, the domestic market shifted its focus towards the Q3 earnings season, which is set to kick off this week. Banks' initial quarterly business results revealed solid business traction supported by robust loan growth," said Vinod Nair, Head of Research at Geojit Financial Services.
"IT and banks will take centre stage in the coming days as the trend in the market will be determined by the early signals from sector majors," Nair added.
Also Read - Auto sector negotiates December hurdles, gears up for fast lane in Q4
Stocks and sectors
HDFC Life, SBI Life Insurance, Axis Bank, Titan Company and TCS were among the top gainers on the Nifty. However, losers included Hindalco Industries, Britannia Industries, M&M, JSW Steel and Grasim Industries.
Among sectors, Nifty Bank, Information Technology, pharma and PSU Bank indices rose 0.5 percent each, while the metal index shed 0.5 percent.
BSE midcap and smallcap index ended marginally higher.
On the BSE, Healthcare, Bank and Information Technology indices added 0.6 percent each, while the Metal index shed 0.5 percent each.
Among individual stocks, a volume spike of more than 300 percent was seen in HDFC Life Insurance Company, ICICI Prudential Life Insurance Company and ICICI Lombard General Insurance Company.
A long build-up was seen in Power Finance Corporation, SAIL, Manappuram Finance, while a short build-up was seen in Multi Commodity Exchange of India. Britannia Industries and Indiabulls Housing Finance.
On the BSE, Mahindra & Mahindra Financial Services, Axis Bank, Jindal Steel & Power, Canara Bank, RBL Bank, Equitas Holdings touched their 52-week high.
Outlook for January 4
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Markets were slightly volatile and moved in a range with a positive bias as investors resorted to select buying due to the absence of cues from the US markets, which were shut on Monday. Surprisingly, European indices and other select Asian peers notched up significant gains and it failed to enthuse local traders in a big way.
However, the trend may reverse soon as key catalysts such as the US Fed minutes of the latest meeting will be released this week.
Technically, positive consolidation formation on daily charts and higher bottom formation on intraday charts is indicating the continuation of an uptrend wave in the near future.
For traders, 18,150 would be the trend decider level, above which, the index could rally to 18,300-18,350. On the flip side, below the 18,150, the uptrend would be vulnerable and below the same, the index could slip to 18,050-18,025.
Prashanth Tapse - Research Analyst, Senior VP (Research), Mehta Equities
In a lacklustre session, markets ended with steady gains led by gains in PSU banking and IT stocks. On the flip side, slight profit booking was seen in media and metal stocks.
Caution prevailed after IMF head Kristalina Georgieva warned that 2023 is going to be a tough year as the main engines of growth, namely the US, Europe, and China, are all experiencing weakening activity.
Technically, the benchmark Nifty will aim to move above its major resistance at the 18,289 mark and above the same, the index moves towards its next major hurdle at the 18,473 mark.
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