The Indian equity benchmarks closed higher for the third straight session on January 4, with the Sensex and the Nifty adding a percent each led by gains in power, oil & gas and banking names.
After a flat start, the market resumed its upward march and remained in the positive terrain through the session to close near the day’s high.
The 30-share Sensex jumped 672.71 points, or 1.14 percent, to close at 59,855.93, while the Nifty gained 179.60 points, or 1.02 percent, at 17,805.30.
“Tracking strong momentum of global peers, domestic bourses witnessed a smooth sail, steered by index heavyweights and gains in financials & consumer durables,” said Vinod Nair, Head of Research at Geojit Financial Services.
Despite a surge Covid cases, investor sentiment remained positive as reports suggested a lower impact of the new variant on the global recovery, he said.
“However, India’s unemployment rate rose to 7.9 percent in December as compared to 7 percent in November, owing to muted economic activity in rural and urban India amid a rise in Omicron cases,” he added.
NTPC, ONGC, SBI, Power Grid and Titan Company were among the top Nifty gainers. Tata Motors, Coal India, Sun Pharma, Tata Consumer Products and Shree Cements led the list of losers.
Among sectors, Nifty Bank, energy and PSU bank indices rose a percent each, while the pharma index shed 0.8 percent and the metal index was down 0.38 percent.
Broader indices underperformed the benchmarks. The BSE midcap index ended flat, while smallcap index gained 0.39 percent.
Stocks and sectors
Except metal and pharma, all BSE sectoral indices ended in the green, with bank, oil & gas and power rising 1-2 percent each.
A long build-up was seen in Balrampur Chini Mills, Hindustan Copper and GNFC, while there was a short build-up in Vedanta, Tata Communications and NBCC.
Among individual stocks, a volume spike of more than 600 percent was seen in Balrampur Chini Mills, Alkem Laboratories and Pidilite Industries.
More than 500 stocks, including Pidilite Industries, Gravita India, Suzlon Energy and Tube Investments of India hit a 52-week high on the BSE.
The Nifty formed a strong bullish candle with a long lower shadow, indicating buying on every small decline.
“The Nifty has to hold above 17,777 zones for an up move towards 18,000 and 18,200 zones, whereas support shifts higher to 17,600 and 17,500 zones,” said Chandan Taparia, Analyst-Derivatives, Motilal Oswal Financial Services.
Outlook for January 5
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
We have achieved the 17800-17850 target for the index. There might be some level of resistance between 17,800 and 17,950 but eventually, the market may move to 18,050-18,100. Any dip or intraday correction can be used to add long positions on the Nifty.
Sachin Gupta, AVP, Research, Choice Broking
Technically, the Nifty has managed to sustain above the prior swing high of 17639.50, which indicates a bullish presence for the coming day.
The index has also moved above the Upper Bollinger Band formation and 50-days simple moving average, which again suggests a bullish trend.
Momentum indicator moving average convergence divergence (MACD) is showing good strength with positive crossover. The relative strength index (RSI), another momentum indicator, is reading is above 60 marks.
The index has support at 17,600, while resistance is at 18,000. On the other hand, the Bank Nifty has support at 36,300, while resistance is at 37,500.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
The Nifty is poised to test 18,000 on the upside. The hourly chart shows that the upper end of a rising channel is also present near the 18,000-mark. Thus, over there, the Nifty is likely to consolidate its recent gains.
On the flip side, the short-term support zone shifts higher along with the key hourly moving averages and the lower channel line. It currently stands near 17,600-17,500.
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