Updated on: Friday, January 07, 2022, 04:09 PM IST

Late buying helps market end in positive territory after intra-day volatility; oil & gas stocks log gains

The Index has been trading above 21&50-HMA which suggests strength in the counter\Representative image |

The Index has been trading above 21&50-HMA which suggests strength in the counter\Representative image |


The stock market indices closed positive after a volatile session. It was a volatile day after a positive opening index made an intraday high at 17,905 level but showed profit booking from a higher level as made intraday low at 17,704.55 levels and managed to close the session at 17,812.70 level with a gain of 66.80 points. While Bank Nifty closed the session at 37739.60 level with a gain of 249.35 points.

At close, the Sensex was up 142.81 points or 0.24 percent at 59,744.65. Nifty was up 66.80 points or 0.38 percent at 17,812.70. About 1,910 shares have advanced, 1,235 shares declined, and 78 shares are unchanged.

On the sectoral front, selling was seen in the auto, capital goods, and pharma stocks, while buying was seen in the bank, FMCG, IT and oil & gas. Stocks like Grasim, ONGC, Hindalco, and Shree Cements were the top gainers. M&M , BAJAJFINSV , BAJFINANCE & LT were prime laggards.

Palak Kothari, Research Associate, Choice Broking, said, "On the technical front, the index has been trading with higher high & higher low formation on a weekly chart as well as formed open marubozu candlestick which suggests an upside rally in the counter. On a four hourly chart index has formed a hammer kind of candlestick pattern which adds bullish momentum for upcoming sessions. Moreover, the index has been trading above 21&50-HMA which suggests strength in the counter. However, a momentum indicator MACD trading with a positive crossover on the daily time-frame. At present, the Index has support at 17,500 levels while resistance comes at 18,000 levels, crossing above the same can show 18,200-18,300 levels. On the other hand, Bank Nifty has support at 36,800 levels while resistance at 38,300 levels."

Deepak Jasani, Head of Retail Research, HDFC Securities said, "Nifty logged the best week in four months rising 2.6 percent. Nifty on daily charts however has formed a long legged doji with slightly upward bias. Volume pickup and positive advance decline ratio portend well for the near term. 17,944-17,655 could be the range for the Nifty in the near-term."

Traders were seen piling up positions in Basic Materials, Oil & Gas and FMCG sectors while selling was witnessed in Capital Goods, Telecom and Consumer Durables sectors’ stocks, said Mohit Nigam, Head-PMS, Hem Securities. "The overall breadth too was fairly positive, with more than 2,000 advancing shares on the BSE versus 1277 declining stocks. On the global front, Asian markets were trading mixed after more declines in big technology stocks pulled major indexes lower on Wall Street. European markets were trading lower as investors bet Friday’s U.S. jobs data would do little to change the Federal Reserve’s path toward faster-than-expected tightening."

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said, "Despite rising COVID cases in India and globally, the markets moved higher as the severity of Omicron variant seems to low. BSE 30 and NSE 50 index inched up by 2.6 percent each during the week. After witnessing correction in recent weeks, BSE Bank ex index staged a strong comeback with returns of 6.5 percents in this week. Defensives like BSE IT and BSE Healthcare gave negative returns during the week. FII turned out to be net buyer in the January month till date. The 10 year US treasury yield moved higher during the week and crude oil prices (Brent crude) increased beyond the $80 mark and is inching closer to the October 2021 highs. Inflation concerns, higher interest rate scenario and increasing covid cases are some of the challenges for the market. Domestic markets over the next one month will closely track the upcoming quarterly results and the Union Budget."

It was a volatile day for the markets, but bulls finally won the battle thanks to selective buying in oil & gas and other key sectoral stocks, said Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities Ltd. "Following the recovery this week, the Nifty has formed a strong bullish candle and is comfortably trading above the 50 day SMA which is broadly positive. In addition, on intraday charts the index has maintained higher bottom formation which supports further uptrend. We are of the view that as long as the index is trading above 17700, the uptrend formation will continue up to 17920-18000 and any further upside would lift the index up to 18,100-18,175 levels. However, strong possibility of a quick correction up to 17,600-17,525 is not ruled out if the index closes below 17,700."

(To receive our E-paper on whatsapp daily, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

Published on: Friday, January 07, 2022, 03:53 PM IST