The Indian benchmark indices continued their winning streak on the second day of new calendar year with Nifty crossing 24,200, intraday, on the back of buying across the sectors led by auto stocks after December sales number.
At close, the Sensex was up 1,436.30 points or 1.83 percent at 79,943.71, and the Nifty was up 445.75 points or 1.88 percent at 24,188.65.
In today's upmove, investors' wealth increased by around Rs 5.8 lakh crore, as the market capitalisation of BSE-listed companies rose to Rs 450.32 lakh crore lakh crore, from Rs 444.43 lakh crore in the previous session.
Biggest Nifty gainers were Bajaj Finserv, Eicher Motors, Bajaj Finance, Maruti Suzuki, Shriram Finance were while losers included Britannia Industries, Sun Pharma.
BSE Midcap and Smallcap indices added a percent each.
All the sectoral indices ended in the green with auto index up 3.5 percent, IT index up 2 percent, while FMCG, Metal, Oil & Gas, PSU, Realty, Bank up 1 percent each.
Nearly 170 stocks touched their 52-week high on the BSE, including Eicher Motors, Lloyds Metals, M&M, PB Fintech, BLS International, Ipca Labs, Firstsource Solustions, Jubilant FoodWorks, United Spirits, Kalyan Jewellers, Anant Raj, Muthoot Finance, Coromandel International, Lupin, Welspun Corp, Laurus Labs, Lemon Tree, among others. Click here to view full list
Outlook for January 3
Aditya Gaggar Director of Progressive Shares
In today's trade, the bulls dominated as the market saw a steady opening followed by a one-way rally throughout the session. This helped the Index break through multiple resistance levels to settle the trade at 24,188.65 with notable gains of 445.75 points. All the sectors, except Media, ended in the green, with Auto and IT being the standout performers. Despite the strong market movement, Mid and Smallcap stocks underperformed the Frontline Index; as the rally was primarily driven by the major Index stocks.
On the daily chart, the Index has formed a robust bullish candle. However, we believe a pullback or retracement is possible, which could push the Index lower to test support at the 24,000 levels. After that, the next leg of the rally could take the Index towards 24,700–24,800.
Ajit Mishra – SVP, Research, Religare Broking
It was an exceptional session for market participants, as the benchmark index surged nearly 2% after consolidating within a range for almost two weeks. Following a flat opening, strength in auto and IT heavyweights fueled an early rally, which was later supported by other sectors. As a result, the Nifty ended near the day’s high at 24,188.65. Broader indices also mirrored the positive sentiment, gaining between 0.6% and 1.1%.
This up move has significantly eased the recent pressure, bringing the Nifty closer to its next resistance at the medium-term moving average, the 100-day exponential moving average (DEMA), currently around the 24,250 mark. A decisive breakout above this level could open the door to 24,400. On the downside, it is crucial for the Nifty to sustain above the 24,000 level; failure to do so might lead to a sideways bias again. We continue to emphasize the importance of selective stock picking, prioritizing those with relatively stronger performance.
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