Key benchmark indices eked out small gains in a volatile trading session as strength in global markets boosted sentiment. On intraday charts, the Nifty has maintained a lower top formation as it once agains witnessed selling pressure near 17,350, which is broadly negative for the market.
At close, the Sensex was up 113.11 points or 0.20.percent at 57,901.14. The Nifty was up 27 points or 0.16 percent at 17,248.40. About 1,462 shares have advanced, 1803 shares declined, and 103 shares are unchanged.
Among the top Nifty gainers are Bajaj Finance, Infosys, BPCL, Titan Company and Reliance Industries. Among the losers were Hindalco Industries, Cipla, Maruti Suzuki, ICICI Bank and Hero MotoCorp.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd said, "In this week so far, the index corrected over 450 points and now it is trading near the important retracement support level. While the short-term texture of the market is still weak, a quick pull-back rally is not ruled out, if the Nifty succeeds to trade above 17,350. However, if it trades below 17,350, a correction wave could continue up to 17,200-17,150. For the bulls, 17,350 would be the intraday breakout level and above the same, the reversal formation will persist up to 17,400-17,435."
Sahaj Agrawal, Head of Research- Derivatives, Kotak Securities said, "After witnessing momentum breakdown in November, the Nifty has managed to form an important support at 16600 levels. Volatility continues to remain elevated due to global factors. Currently, markets are hovering around critical support levels and provide a good risk-reward opportunity. As long as 16,600 is held, there are high chances of the Index testing 19,000 odd levels; failure would have meaningful negative implications."
Mohit Nigam, Head - PMS, Hem Securities said,"Benchmark indices broke a four day losing streak, aided by gains in information technology and energy stocks, after fluctuating between gains and losses for most of the session with Sensex gained 113 points or 0.20 percent at 57,901 and the Nifty gained 27 points or 0.16 percent at 17,248. Nifty 50 formed a bullish candle on the daily chart with the benchmark index managing to close a day near good support zone of 17,200. If it manages to hold above said levels, we may witness some bounce then some extension can be possible towards 17350-17450 zone which are immediate resistance on the higher side. Volatility gauge Index plumped 7.72 percent to 15.89."
Prashant Tapse, Vice President (Research) at Mehta Equities Ltd., said, "The benchmarks finally ended a super volatile session on a positive note, thanks to short covering in heavyweight stocks like Reliance Industries, Infosys & Bajaj Finance. Bank Nifty was unfortunately an underperformer. Even the broader markets were not in sync with the up move as Midcap and Smallcap indices ended in red."
"The picture has become murkier for benchmarks in near term as Fed has signaled three rate hikes for 2022. The Fed has also said it will trim $30 billion from its original $120 billion program of monthly purchases of Treasuries and mortgage-backed securities, up from a $15 billion cut previously outlined. Digging deeper, the headline U.S inflation for November was up 0.8 percent M-o-M and 6.8 percent Y-o-Y – the fastest annual pace since 1982, this ideally means more aggressive action from the Fed sooner than later. Volatility is likely to be the hallmark and bulls will majorly heave a sigh of relief only above 17,607 mark."
