A sharp rebound in the second half on January 8 amid buying in heavyweights and IT, oil & gas, FMCG stocks, helped the Indian benchmark indices to erase most of the intraday losses to end nearly flat.
Despite weak global markets, Indian equity indices opened higher but failed to build the gains and traded lower for most part of the session. However, last hour buying helped to wiped out all the intraday losses.
At close, the Sensex was down 50.62 points or 0.06 percent at 78,148.49, and the Nifty was down 18.95 points or 0.08 percent at 23,688.95.
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ONGC, ITC, Reliance Industries, TCS, Asian Paints were among the top gainers on the Nifty, while losers were Apollo Hospitals, Trent, Bajaj Auto, Adani Ports, Shriram Finance.
BSE Midcap and Smallcap indices shed 1 percent each.
On the sectoral front, FMCG, oil & gas, IT rose 0.3-1.5 percent, while PSU bank, pharma, metal, media, media, bank, auto shed 0.4-1 percent.
More than 140 stocks touched their 52-week high on the BSE, including Anant Raj, PTC Industries, Krishna Institute of Medical Sciences, Max Healthcare, Aegis Logistics, Apar Industries among others. Click here to view full list
On the other hand, nearly 100 stocks touched their 52-week low on the BSE, including Bandhan Bank, Kajaria Ceramic, Mahindra Life, Aarti Industries, Astral, Yes Bank, Balaji Amines, IRCTC, Birlasoft, Alok Industries, Relaxo Footwear, Network 18, Container Corporation, Procter and Gamble Hygiene, among others. Click here to view full list
Outlook for January 9
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities
Nifty witnessed smart upside recovery from the lows on Wednesday after showing a deep cut in the early-mid part of the session and settle the day lower by 18 points. Nifty opened on a positive note and slipped into sharp weakness soon after the opening. The market has started to recover from the swing low of 23496 levels and the upside recovery extended in the mid to later part of the session.
A small red candle was formed on the daily chart with long lower shadow. Technically, this market action indicates a formation of 'hammer' type candle pattern. Normally, such hammer formation after a reasonable decline calls for an impending trend reversal on the upside post confirmation.
Though, Nifty placed below the crucial 200day EMA at 23700 levels, there is an absence of sharp break down below this key support. This 200 DEMA has offered significant trend reversal on upside in the past.
The short term trend of Nifty remains weak. But the smart upside recovery from near 23500 levels is indicating chances of an upside bounce in the coming sessions. A sustainable move above the hurdle of 23800 levels could confirm upside bounce in the market. Immediate support is placed at 23496 levels.
Aditya Gaggar Director of Progressive Shares
The market experienced a volatile session, with the Bears initially driving the Index down by over 200 points, primarily due to weaker GDP estimates. However, the Index found support around the 23,500 level, and a reversal was seen with the help of strong performance from the heavyweight stocks. This support helped the market recover and settle the trade at 23,688.95 with a minuscule loss of 18.95 points.
The Oil and Gas sector emerged as the top performer, followed by IT and FMCG, while the Pharma and PSU Banking sectors corrected the most. The broader market underperformed, with Mid and Smallcaps tumbling by over 2% at one point, though a partial recovery was noted.
The Index formed a Bullish Hammer candlestick pattern and tested the lower end of the Symmetrical Triangle Formation signalling the potential trend reversal. Today's low of 23,500, is now seen as immediate support. On the upside, the 23,800-23,900 zone will be crucial resistance.
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