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Taking Stock | Sensex above 60,000, Nifty regains 18,000; auto, bank, realty shine

More than 600 stocks, including Zee Media Corporation, India Cements and SRF, hit a 52-week high on the BSE

January 10, 2022 / 05:28 PM IST

The Indian market started the week on a strong note, with the Sensex closing above 60,000 and the Nifty going past the psychologically important 18,000-mark on January 10 on across-the-board buying and expectations of a healthy earnings season.

Despite mixed global cues, the market started strong and extended gains to close near the day's high, ignoring rising Omicron cases as auto, bank, power and realty stocks lifted the indices.

At close, the Sensex was up 650.98 points, or 1.09 percent, at 60,395.63, and the Nifty was up 190.60 points, or 1.07 percent, at 18,003.30.

"Amid weak global markets and rising Covid cases, the domestic market displayed strong momentum on expectations of a healthy start to the earnings season,” said Vinod Nair, Head of Research at Geojit Financial Services.

Public-sector banks led the sectorial rally as reports talked about an increase in the FPI limits, while the realty sector followed the trend on robust sales numbers and expectations of support measures in the upcoming budget, he said.

Close

"Globally, bourses were muted as reports of record-high Eurozone inflation at 5 percent kept investors on the edge while awaiting the release of the US inflation data later this week, which is expected to remain elevated," Nair said.

UPL, Hero MotoCorp, Titan Company, Tata Motors and Maruti Suzuki were among the top Nifty gainers. Losers were Wipro, Nestle, Divis Labs, Asian Paints and Power Grid Corp.

All the sectoral indices ended in the green, with Nifty PSU bank, auto and bank indices up 1-3 percent.

IndexPricesChangeChange%
Sensex60,098.82-656.04 -1.08%
Nifty 5017,938.40-174.65 -0.96%
Nifty Bank38,041.35-168.95 -0.44%
Nifty 50 17,938.40 -174.65 (-0.96%)
Wed, Jan 19, 2022
Biggest GainerPricesChangeChange%
ONGC170.256.40 +3.91%
Biggest LoserPricesChangeChange%
Infosys1,867.05-53.70 -2.80%
Best SectorPricesChangeChange%
Nifty PSU Bank2801.6560.45 +2.21%
Worst SectorPricesChangeChange%
Nifty IT37281.70-810.10 -2.13%

Broader markets ended in the green. The BSE midcap index was up 0.69 percent and the smallcap index 1.2 percent.

Stocks and sectors

On the BSE, auto, bank, capital goods, power and realty indices rose 1-2 percent, while IT and oil & gas indices added 0.5 percent each.

A long build-up was seen in BHEL, IDFC and City Union Bank, while there was a short build-up in Ipca Laboratories, Coforge and Godrej Consumer Products.

Among individual stocks, a volume spike of more than 200 percent was seen in SBI Cards, IDFC and Ipca Laboratories.

More than 600 stocks, including Zee Media Corporation, India Cements and SRF, hit a 52-week high on the BSE.

Technical View

The Nifty formed a bullish candle on the daily scale and gave its highest daily close of the last 38 sessions.

"The Nifty has to hold above 17,950, for an up move towards 18,200 and 18,400 levels, whereas support shifts higher to 17,850 and 17,777 zones," said Chandan Taparia, Analyst-Derivatives, Motilal Oswal Financial Services.

Outlook for January 11

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

The Nifty successfully closed above 17,950, which should allow the index to move closer to 18,300-18,400.

The overall mood of the market seems jubilant, hence intraday corrections can be looked at as buying opportunities. As long as 17,700 holds on a closing basis, the trend is positive.

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

After a gap-up opening, the Nifty consolidated near the swing high of 17,944. Towards the end of the session, it got stretched beyond the 18,000-mark.

The Fibonacci retracement shows that the index is heading towards the 78.6 percent retracement of the October–December decline. There is some upside potential till 18,140 in the short term before the index gets into a brief consolidation phase.

The upside potential will hold true as long as the Nifty trades above the immediate support zone of 17,900-17,880.

A breach of the support zone will drag the index into a sideways action. The crucial support for the short term is at the swing low of 17,655.

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

The Nifty is seeing short-term resistance of 17,930 and after the intraday breakout, it maintained a breakout continuation formation throughout the day.

On the daily and intraday charts, the market is still holding higher high and higher low formation, which is broadly positive.

For day traders, the support has shifted to 17,900 from 17,700 and above these, the bullish sentiment is likely to continue to 18,075-18,150 levels.

If the index slips below 17,900, it can retest the level of 17,800-17,760.

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.
Rakesh Patil
first published: Jan 10, 2022 04:56 pm

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