The market continued rise for the fourth consecutive session on January 5, with benchmark indices crossing major psychological marks with ease powered by oil & gas, metal, auto, bank and realty stocks.
After a muted start on mixed global cues, the bulls tightened the grip on Dalal Street. The BSE Sensex jumped 367.22 points, or 0.61 percent, to close at 60,223.15, while the Nifty added 120 points, or 0.67 percent, to end at 17,925.30.
"In a highly volatile session, the domestic market witnessed a recovery following a mild dip, though the global sentiments were not in favour of bulls. Increasing Covid cases leading to stricter restrictions has pressurised market volatility," said Vinod Nair, Head of Research at Geojit Financial Services.
The banking sector outdid other sectoral indices, as some private lenders reported double-digit business growth during the third quarter.
"IT stocks took a blow as investors awaited the onset of the quarterly results season. US and Asian markets traded weak ahead of the release of the US Fed meeting minutes, while European indexes held ground," Nair said.
Bajaj Finserv, Bajaj Finance, Kotak Mahindra Bank, JSW Steel and Grasim Industries were among the top Nifty gainers. Losers included Tech Mahindra, Infosys, HCL Technologies, Divis Labs and Wipro.
On the sectoral front, Nifty IT index shed 2 percent, while Nifty bank, metal, auto and PSU bank indices rose 1-2 percent.
Broader indices underperformed the benchmarks yet again. The BSE midcap index added 0.36 percent, while smallcap index closed flat.
Stocks and sectors
On the BSE, except IT, healthcare and power, all sectoral indices ended in the green. Bank, metal, realty and oil & gas indices were up 1-2 percent.
A long build-up was seen in Hindustan Copper, Tata Communications and Chambal Fertilisers, while there was a short build-up in Dixon Technologies, Persistent Systems and L&T Infotech.
Among individual stocks, a volume spike of more than 200 percent was seen in AU Small Finance Bank, Chambal Fertilisers and Syngene International.
More than 400 stocks, including Radico Khaitan, Mindteck, Madhucon Projects and Dwarikesh Sugar Industries hit a 52-week high on the BSE.
Technical View
The Nifty formed a bullish candle on the daily scale as well as higher highs, higher lows for the fourth session in a row.
"The Nifty has to hold above 17,900, for an up move towards 18,000 and 18,200, whereas support shifts higher to 17,777 and 17,600 zones," said Chandan Taparia, Analyst-Derivatives, Motilal Oswal Financial Services.
Outlook for January 6
Rohit Singre, Senior Technical Analyst, LKP Securities
The index is close to its good hurdle of 18,000-18,100 zone where one can look to trim long position. If the index manages to sustain above the said resistance, we may see fresh breakout and the Nifty may inch towards the previous swing high.
On the other hand, support is formed near 17,800-17,700 and any dip will again be a fresh buying opportunity.
Sahaj Agrawal, Head of Research-Derivatives at Kotak Securities
The market crossed a significant barrier when it went past 17,800 and. I believe from an uncertain/volatile environment, the Nifty is now headed for a directional move.
We expect 19,000-19,500 levels in the medium term. Overall participation is expected to take place– value is seen in metals, energy, FMCG, and banking stocks. IT stocks can be bought on correction post recent run-up.
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