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Taking Stock | Nifty ends above 18,300, Sensex gains led by auto, realty; bank, pharma underperform

Broader markets outperformed the main indices, with BSE midcap index rose 0.23 percent and smallcap index added 0.6 percent.

January 17, 2022 / 04:44 PM IST

Indian market continued the rangebound movement on the second day on January 17 but ended on positive note with Nifty above 18,300 led by auto, power, realty stocks, while selling in banking and pharma names minimize the gains.

Amid mixed global cues, the Indian benchmark indices started the week on flat note and remain choppy with positive bias for most of the session. At close, the Sensex was up 85.88 points or 0.14% at 61,308.91, and the Nifty was up 52.30 points or 0.29% at 18,308.10.

"Auto stocks shined in a flat trading session on the back of price hikes, thrust on electric vehicles and ETF launches in the sector as the basket of stocks posted smart gains," said S Ranganathan, Head of Research at LKP securities.

"The commodity index provided good support in afternoon trade buoyed by earnings. The broader markets witnessed profit taking in pharma stocks with investor interest seen in footwear stocks," he added.

Hero MotoCorp, Grasim Industries, ONGC, Tata Motors and UltraTech Cement were the top Nifty gainers. Losers were HCL Technologies, HDFC Bank, Britannia Industries, Axis Bank and Cipla.

Close

Except Nifty Pharma and Nifty Bank all other sectoral indices ended in the green with Auto index added 2 percent.

Broader markets outperformed the main indices, with BSE midcap index rose 0.23 percent and smallcap index added 0.6 percent.

Stocks and sectors

IndexPricesChangeChange%
Sensex54,326.391,534.16 +2.91%
Nifty 5016,266.15456.75 +2.89%
Nifty Bank34,276.40960.75 +2.88%
Nifty 50 16,266.15 456.75 (2.89%)
Fri, May 20, 2022
Biggest GainerPricesChangeChange%
Dr Reddys Labs4,249.10319.65 +8.13%
Biggest LoserPricesChangeChange%
Shree Cements22,001.20-215.15 -0.97%
Best SectorPricesChangeChange%
Nifty Metal5706.35230.10 +4.20%
Worst SectorPricesChangeChange%
Nifty IT28789.40437.25 +1.54%

On the BSE, Bankex and Healthcare indices ended in the red, while Auto, Power and Realty indices jumped 1-2 percent.

A long build-up was seen in Hero MotoCorp, Apllo Tyres and Exide Industries, while there was a short build-up in Granules, HCL Technologies and Vedanta.

Among individual stocks, a volume spike of more than 300 percent was seen in UltraTech Cement, Hero MotoCorp and Dixon Technologies.

500 stocks, including Suzlon Energy, HFCL Welspun Corp, hit a 52-week high on the BSE.

Technical View

Nifty formed a bullish candle on daily scale and has been forming higher highs from the last seven sessions.

"The Nifty has to hold above 18,250, for an up move towards 18,400 and 18,600 levels whereas support is intact at 18,181 and 18,081 zones," said Chandan Taparia, Analyst-Derivatives, Motilal Oswal Financial Services.

Outlook for January 18

Palak Kothari, Research Associate at Choice Broking:

On the technical front, the index has given breakout above the prior swing high & and formed a bullish candle on a daily time frame which suggests an upside rally in the counter. Furthermore, the index has been trading above Ichimoku cloud which adds strength for upside.

Moreover, the index has been trading above 21 & 50-DMA with a positive crossover as well as a momentum indicator MACD & STOCHASTIC are trading with a positive crossover on the daily time-frame which suggests strength in the counter.

At present, the index has support at 18200 levels while resistance comes at 18380 levels, crossing above the same can show 18500-18600 levels. On the other hand, Bank Nifty has support at 37800 levels while resistance at 39000 levels.

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

The markets closed on a strong footing and has crossed 18300. We should be heading to 18500; however it is not advisable for traders to jump into fresh long positions.

A buy on dips approach is better as the risk reward ratio is not favorable at current levels. The support for the Nifty is at 18100.

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

For the trend following traders, 18225 would be the key level to watch out for and above the same the uptrend formation may continue up to 18375-18400 levels.

However, a quick intraday correction is not ruled out if the index trades below 18225 and below the same it could hit 18150-18100.

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 17, 2022 04:44 pm
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