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Taking Stock | Sensex, Nifty end marginally higher in choppy trade; metals outperform

Broader markets outperformed the main indices, with BSE midcap rose 0.38 percent and smallcap index added 0.49 percent.

January 13, 2022 / 04:43 PM IST

Market continued the winning momentum in the fifth straight session on January 13 but ended with marginal gains in a volatile day due to mixed microeconomic data and earning from top 3 IT companies.

Market started on flat note amid mixed global cues and gyrated between gains and losses throughout the session with buying saw in the metal, pharma, and power names. At close, the Sensex was up 85.26 points or 0.14% at 61,235.30, and the Nifty was up 45.50 points or 0.25% at 18,257.80.

"Markets consolidated in a narrow range and settled marginally higher, taking a breather after the recent surge. Initially, the upbeat start of the IT majors triggered a firm opening, however, profit taking in the banking space trimmed the gains in no time," said Ajit Mishra, VP - Research, Religare Broking.

"The benchmark continued to trade lacklustre thereafter however movement in the metal and pharma space kept the traders’ busy."

"Consequently, the Nifty index ended at 18,257 levels; up by 0.25%. Amid all, the broader indices outperformed wherein both midcap and smallcap gained nearly 0.6% each," Mishra added.

Close

Tata Steel, JSW Steel, Sun Pharma, Coal India and UPL were the top Nifty gainers. Losers were Wipro, Asian Paints, HDFC Bank, Kotak Mahindra Bank and IndusInd Bank.

Among sectors, Nifty Energy, Metal and Pharma indices added 1-3 percent, while Nifty Bank fell 0.67 percent.

Broader markets outperformed the main indices, with BSE midcap rose 0.38 percent and smallcap index added 0.49 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%

Stocks and sectors

BSE Metal, Power, Healthcare and Capital Goods indices jumped 1-4 percent, while Bank and Realty indices fell 0.5 percent each.

A long build-up was seen in Polycab India, Tata Steel, Jindal Steel, while there was a short build-up in Wipro, Oberoi Realty and Asian Paints.

Among individual stocks, a volume spike of more than 300 percent was seen in Polycab India, Indian Energy Exchange and Coal India.

400 stocks, including Thermax, Sun Pharma, Page Industries and Jindal Stainless, hit a 52-week high on the BSE.

Technical View

Nifty remained in broader trading range but formed a doji sort of candle on daily scale with longer lower wick indicating buying was visible at declines.

"The Nifty has to hold above 18,181, for an up move towards 18,400 levels, whereas support shifts higher to 18,081 and 18,000 zones," said Chandan Taparia, Analyst-Derivatives, Motilal Oswal Financial Services.

Outlook for January 14

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

The Nifty has formed a Doji candlestick formation indicating indecisiveness between bulls and bears. However, the medium-term texture is still positive.

Direction wise, below 18200 we can expect profit booking and post breakdown the chances of hitting 18140-18100 levels are bright. On the other hand, as long as the index is trading above 18200, the uptrend will continue till 18300-18350.

Vishal Wagh, Research Head, Bonanza Portfolio:

Going ahead 17,940 -18,000 will be good short-term support for upcoming trading sessions and on the upside 18,340 will act as new immediate resistance.

A hammer candlestick pattern is visible on daily charts indicating that the steam is cooling off and we can see sideways or profit booking sessions in the coming days. The structure of the index is in favor of bulls. Market breadth has remained at 2:1 with 36 stocks on the advancing side & 14 stocks on the declining side.

Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities

Nifty remains in an uptrend and is expected to test 19000-19500 levels going ahead. Any correction in the short term can be used to initiate fresh long positions.

We remain positive on Metals and FMCG at current levels; Realty, IT, and Auto trade with positive bias but can be bought only on deeper corrections.

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

The Nifty opened gap up on January 13 post which it traded in a sideways manner & ultimately formed a Dragonfly Doji on the daily chart. This gives a warning that the rally can run out of the steam in the short term. The hourly momentum indicator continues to show negative divergence near the overbought zone that also shows that the index is losing momentum on the upside.

The hourly chart shows that the index is trading near lower end of a rising channel, which is near 18160. Below that, a recent gap area of 18081 – 18128 will be the key support to watch out for.

The short term trajectory can remain positive as long as the index trades above these supports & the Nifty can test its weekly upper Bollinger Band near 18400. On the other hand, breach of these supports will be an indication of exhaustion in the trend from short term perspective.

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 13, 2022 04:43 pm

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