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Taking Stock | Market extends gains; Nifty above 18,100, Sensex rises 390 points

On the BSE, metal index gained 2.4 percent, capital goods index added 1.4 percent, while bank and pharma indices added 0.5 percent each.

January 18, 2023 / 04:25 PM IST
Benchmark indices gained for the second consecutive session on January 18 with Nifty closing around 18,150. At close, the Sensex was up 390.02 points or 0.64% at 61,045.74, and the Nifty was up 112 points or 0.62% at 18,165.30.

Benchmark indices gained for the second consecutive session on January 18 with Nifty closing around 18,150. At close, the Sensex was up 390.02 points or 0.64% at 61,045.74, and the Nifty was up 112 points or 0.62% at 18,165.30.

The Indian equity market extended the winning streak on the second consecutive session with benchmark indices crossing major levels amid buying seen in the metal and capital goods stocks.

The market started the day on a flat note, but pick-up the pace as the day progressed with Nifty making a high close to 18,200, while Sensex also went above 61,100.

At Close, the Sensex was up 390.02 points or 0.64% at 61,045.74, and the Nifty was up 112 points or 0.62% at 18,165.30.

"After the adverse performance during the last one and a half months, Indian market has been advancing in the last 2-3 trading days," said Vinod Nair, Head of Research at Geojit Financial Services.

"The trend is supported by the marginal improvement in FIIs inflows and upside in domestic investments. The domestic investors are adopting buy on dip strategy," he added.

Stocks and sectors

Hindalco Industries, Tata Steel, Larsen and Toubro, UPL, and HDFC were among the top gainers on the Nifty, while losers included Tata Motors, HDFC Life, UltraTech Cement, Adani Enterprises, and BPCL.

On the sectoral front, the Nifty metal index was up 1.6 percent and the Nifty bank, infra, and pharma indices rose 0.5 percent each. On the other hand, the Nifty PSU Bank index shed 1.2 percent.

Sensex57,453.84-536.06 -0.92%
Nifty 5016,939.30-160.75 -0.94%
Nifty Bank39,190.75-407.35 -1.03%
Nifty 50 16,939.30 -160.75 (-0.94%)
Mon, Mar 20, 2023
Biggest GainerPricesChangeChange%
BPCL359.157.75 +2.21%
Biggest LoserPricesChangeChange%
Bajaj Finserv1,239.10-62.65 -4.81%
Best SectorPricesChangeChange%
Nifty FMCG45036.70178.40 +0.40%
Worst SectorPricesChangeChange%
Nifty Metal5442.75-159.85 -2.85%

Among the broader indices - the BSE midcap and smallcap underperformed the main indices and ended with marginal gains.

On the BSE, the metal index gained 2.4 percent, the capital goods index added 1.4 percent, and bank and pharma indices added 0.5 percent each.

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More than 100 stocks touched their 52-week high on the BSE including Atul Auto, Nelcast, Marksans Pharma, Anand Rathi Wealth, L&T, Swan Energy, IDFC and Anant Raj.

Among individual stocks, a volume spike of more than 300 percent was seen in Siemens, ICICI Lombard General Insurance Company and Balrampur Chini Mills.

A long build-up was seen in L&T, Siemens and Hindalco Industries. A short build-up was seen in Delta Corp, Bank of Baroda and ICICI Lombard General Insurance Company.

Also Read: IndusInd Bank beats Street forecast, Q3 net zooms 58% to Rs 1,963 crore

Outlook for January 19

Osho Krishan, Sr. Analyst - Technical & Derivative Research, Angel One

The Indian equity markets have witnessed a splendid day of trade amid the follow-up buying in the benchmark index. The across-board buying participation provided the much needed impetus to levitate the market sentiments. Amidst the action-packed day, Nifty surged consecutively for the second time in the week and concluded the session a tad above 18,150, procuring 0.62 percent.

On the technical aspect, the index has soared over all the major exponential moving averages on the daily chart, construing a positive development. However, the current placement at the sloping trendline could be seen as the last hurdle to overcome, and any breakout above 18,200 could trigger a fresh round of longs in the system.

As far as levels are concerned, 18,050-18,100 is likely to cushion any fall in the index, followed by the sacrosanct support of the 18,000 mark. On the flip side, an authoritative move beyond 18,200-18,250 is needed to affirm the bullish trend, and then we may expect 18,400-18,500 in a comparable period.

There have been contributions across the board, wherein the significant benefactors that boosted the bullish sentiments were from the Metal space. Looking at the recent developments, the undertone is likely to remain bullish, wherein any dip could be seen as a buying opportunity.

Meanwhile, we advocate to keep identifying apt themes and potential movers within the same that are likely to provide better trading opportunities and stay abreast with global developments.

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

The benchmark indices continued positive momentum for the second day in a row, the Nifty ended 112 points higher while the Sensex was up by 390 points.

Among sectors, Metal index bounced back sharply, rallied over 1.75 percent whereas despite strong momentum profit booking continued in PSU Bank index.

Technically, the market continued positive momentum and after a long time the index succeeded to close above the 20-day SMA (Simple Moving Average) which is broadly positive. However, 18250/61300 could act as a profit booking zone for the trend following traders.

We are of the view that, as long as the index is trading above 18050/60700 or 20-day SMA, the texture of the chart suggests positive sentiment is likely to continue in the near future. Above 18050/60700, the index could move up to 18250/61300 and further upside may also continue which could lift the market till 18300/61500 or 50-day SMA. On the flip side, below 18050/60700 uptrends would be vulnerable.

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

Rakesh Patil
first published: Jan 18, 2023 03:50 pm