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Taking Stock | Market starts 2022 on bullish note; Nifty ends above 17,600 as metal, banks shine

More than 500 stocks including Persistent Systems, Bartronics India, Larsen & Toubro Infotech and Allcargo Logistics hit a 52-week high on the BSE.

January 03, 2022 / 04:46 PM IST

The market continued the winning streak for the second day and started the new year on a bullish note with benchmark indices, the Sensex and the Nifty, gaining 1.5 percent each.

The benchmark indices opened on a firm note and extended the gain as the day progressed, ignoring muted global cues and rising Omicron cases.

At close, the Sensex was up 929.40 points or 1.60 percent at 59,183.22, and the Nifty was up 271.70 points or 1.57 percent at 17,625.70.

"As India widens its vaccine coverage, Bulls ushered in the new year in style. Nifty Bank led the rally with good support from other sectoral indices buoyed by positive global cues," said S Ranganathan, Head of Research at LKP securities.

"As India achieved the fastest rate of growth in renewable energy capacity addition during the last few years, it is indeed remarkable that the country was able to meet its non-fossil fuel targets almost a decade ahead of its committed deadline."

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"Market Breadth was extremely positive with a host of small and midcaps across sectors posting smart gains," he added.

Coal India, Eicher Motors, Bajaj Finserv, Bajaj Finance and ICICI Bank were among the top Nifty gainers. Losers included Cipla, Dr Reddy’s Labs, M&M, Divis Labs and Tech Mahindra.

Except Pharma, all other sectoral indices ended in the green with Nifty Auto, Bank, IT, Metal, and PSU Bank indices rose 1-2 percent.

IndexPricesChangeChange%
Sensex54,208.53-109.94 -0.20%
Nifty 5016,240.30-19.00 -0.12%
Nifty Bank34,163.70-138.20 -0.40%
Nifty 50 16,240.30 -19.00 (-0.12%)
Wed, May 18, 2022
Biggest GainerPricesChangeChange%
TATA Cons. Prod754.3020.05 +2.73%
Biggest LoserPricesChangeChange%
Power Grid Corp227.90-10.75 -4.50%
Best SectorPricesChangeChange%
Nifty FMCG37989.05470.25 +1.25%
Worst SectorPricesChangeChange%
Nifty PSU Bank2484.50-39.65 -1.57%

Broader indices underperformed the main indices with BSE midcap and smallcap indices gaining over 1 percent each.

Stocks and sectors

Among sectors, BSE Metal, Capital Goods, Auto, Bankex, FMCG, Oil & Gas, and Realty indices rose 1-2 percent. However, Healthcare index ended with marginal losses.

A long build-up was seen in Hindustan Copper, GNFC and NBCC, while there was a short build-up in Rain Industries, Bata India and Tata Communications.

Among individual stocks, a volume spike of more than 200 percent was seen in Eicher Motors, Navin Fluorine International and M&M Financial.

More than 500 stocks, including Persistent Systems, Bartronics India, Larsen & Toubro Infotech and Allcargo Logistics, hit a 52-week high on the BSE.

Technical View

The Nifty formed a strong bullish candle and has been forming higher highs-higher lows on the daily frame.

"The Nifty has to hold above 17,500 zones, for an up move towards 17,777 and 17,900 zones, whereas support shifts higher to 17,350 and 17,200 zones," said Chandan Taparia, Analyst-Derivatives, Motilal Oswal Financial Services.

Outlook for January 4

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

We should now be headed to 17,850 as the next level of resistance. Post that 18,050 would be the next possible target for the Nifty. Since we are in positive terrain, any drop or intraday dip can be utilised to accumulate buy positions for higher targets.

Ajit Mishra, VP - Research, Religare Broking

The participation of the banking pack has changed the market mood of late while other things remain the same. However, the update on the COVID situation combined with the performance of the global markets would play a critical role ahead.

Now, the next hurdle is at 17,750 in the Nifty. We reiterate our view to focus on the selection of stocks while keeping a check on leveraged positions.

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas:

The Nifty has reached a crucial level of 17,600. We need to see whether the index sustains above 17,600. If it does so, then the index can target 18,000 going ahead.

The hourly chart shows that the entire recovery is panning out in a rising channel. The lower channel line along with the key hourly moving averages, i.e. 17,400 will now take the role of crucial short term support.

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: Jan 3, 2022 04:35 pm
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