The Indian equity markets started the new calendar year on a positive note as the benchmark indices ended higher on January 1, with the Nifty closing near 23,750 amid buying seen across the sectors barring metal and realty names.
At close, the Sensex was up 368.40 points or 0.47 percent at 78,507.41, and the Nifty was up 98.10 points or 0.41 percent at 23,742.90.
Maruti Suzuki, M&M, Bajaj Finance, L&T, Eicher Motors were among the top gainers on the Nifty, while losers included Dr Reddy's Labs, Hindalco Industries, Adani Ports, ONGC, Tata Steel.
Except realty and metal, all other sectoral indices ended in the green with auto, power and capital goods indices up 1 percent each.
BSE Midcap index was up 0.5 percent and the smallcap index rose 1 percent.
Nearly 150 stocks touched their 52-week high on the BSE, including Authum Investment, Kaynes Technology, Coromandel International, Blue Star, Lemon Tree, Muthoot Finance, Lloyds Metals, Praj Industries, Laurus Labs, Jubilant FoodWorks, United Spirits, Ipca Labs, Radico Khaitan, among others. Click here to view full list
Outlook for January 2
Aditya Gaggar Director of Progressive Shares
Indian equities began the new year on a subdued note. Although initially it was trading lower, the Auto sector and selected other stocks helped lift the overall market. With continued momentum, the Index managed to compound its gains to end the session at 23,742.90 with gains of 98.10 points.
Sector wise, Auto emerged as the top performer, while Realty saw the most significant correction. In the broader market, Midcaps moved in-line with the Frontline Index, while Smallcaps showed a better performance.
The positive divergence in the RSI played well and for the reversal to gain further strength, the Index needs to surpass the resistance zone between 23,850-23,900, where the 200-day moving average (DMA) lies. On the downside, the support seems to be at the 23,560 levels.
Ajit Mishra – SVP, Research, Religare Broking
The markets began the calendar year on a positive note, gaining nearly half a percent. After an initial decline, buying interest in select heavyweight stocks across sectors quickly erased losses, gradually pushing the index higher. As a result, the Nifty reclaimed its long-term moving average, the 200 DEMA, and ended at 23,742.90. Most sectors contributed to this recovery, with auto and energy emerging as top performers. Similarly, the broader indices followed suit, recording gains ranging from 0.4% to 1.05%.
The index has now entered its second week of consolidation, and current indicators suggest that this trend is likely to persist. We continue to advocate a stock-specific strategy, focusing on counters exhibiting relatively stronger momentum. Besides pharma and healthcare, selective opportunities are emerging in the FMCG and energy sectors, so traders should position themselves accordingly.
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