The stock market bid adieu to Year 2021 with a robust performance. After a positive opening, the index continued its upside momentum and made an intraday high at 17,400.80 level and managed to close the session at with a gain of 150.10 points. Bank Nifty closed the session at 35,481.70 level with a gain of 418 points.
At close, the Sensex was up 459.50 points or 0.80 percent at 58,253.82. The broader Nifty was up 150 points or 0.87 percent at 17,354. About 2,335 shares have advanced, 947 shares declined, and 90 shares are unchanged.
On the sectoral front, all the indices managed to close on a green note while, Nifty Metal and Nifty Auto were the top gainers. Stocks like Hindalco, Titan, Tata Motors, Kotak Mahindra Bank and UltraTech Cement were the top gainers while NTPC, Cipla, Tech Mahindra, Power Grid Corp, Infosys and Coal India were prime laggards.
Palak Kothari, Research Associate, Choice Broking said, "On the technical front, the index has been trading in falling channel formation and facing resistance from the upper band of formation crossing above the same can show upside rally in the counter. On the Four-Hourly Chart, the index has confirmed the bullish marubozu candle which suggests strength for an upcoming session. Moreover, the index has been trading above 21&50-HMA which suggests strength in the counter. However, A momentum indicator STOCHASTIC & MACD trading with a positive crossover on the daily time-frame. At present, the Index has support at 17150 levels while resistance comes at 17,450 levels, crossing above the same can show 17,550-17,700 levels. On the other hand, Bank nifty has support at 34,800 levels while resistance at 35,800 levels."
Mohit Nigam, Head - PMS, Hem Securities, said, the benchmark Indices ended this year on a positive note today with Nifty closing at +0.87 percent and Sensex closing at +0.80 percent. Strong buying is seen in Auto, Metal and Realty stocks. Textile stocks gained today after the announcement of a deferred GST hike. CMS Info Systems listed today with moderate gains but then strong buying was witnessed in stock which led a rally upto 20 percent in intraday. It was the worst year for gold in the last five years as due to global economic recovery, investors are more attracted towards equity markets rather than safe haven buying, Nigam said.
Nigam said, "On the technical front, overall structure looks positive for Nifty 50 as it manages to sustain well above 17,200 level on a closing basis for the last few sessions which is a positive sign for the index technically and we believe we can witness 17,500 levels in near term. 17,200 and 17,500 are immediate support and resistance in Nifty. For Bank Nifty, 35,000 and 36,000 are immediate support and resistance."
Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities Ltd, said, "Technically, the Nifty is currently comfortably trading above 20 day SMA and has maintained a higher bottom formation on intraday as well as on daily charts which is broadly positive for the market. On weekly charts, the index has formed a long bullish candle that also supports a short-term uptrend. But 17600 or 50 day SMA could act as an important resistance level for the traders. In the near future, as long as the index is holding 17,200 or 20 day SMA, the chances of hitting 17550-17600 are bright. Further upside may also continue which could lift the index up to 17725-17800 levels. "
Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said, "The short term trend of Nifty continues to be positive and one may expect further upside in the short term. A sustainable move above 17640 is likely to negate the bearish setup and that could open more upside as per daily and weekly timeframe chart. Immediate support is placed at 17260 levels."
Deepak Jasani, Head of Retail Research, HDFC Securities, said, "Nifty ended the year 2021 with hefty gains of 24.1 percent, the best gain in four years. For the week too it gained a healthy 2.06 percent. Nifty has risen 6.4 percent from the recent bottom. Now onwards the rise will be slower in the new year when all players will return to their trading desks. 17,161 is a support in the near term while 17,405-17,534 band could provide resistance."
Prashanth Tapse, Vice President (Research), Mehta Equities Ltd, said, "We look forward to a super-duper profitable 2022. Cautious optimism likely to be the preferred theme at Dalal Street on hopes that the omicron COVID variant's effect on equities will ultimately be modest. We suspect, Nifty bulls will aim to extend their annual 'Santa Claus rally'. Hopefully, investors shrug-off Omicron as barely more than a blip on the radar. Nifty’s next goal post seen at 17,500-17,750 zone. Technically, the said optimism could reverse and cause a nasty New Year's hangover if Nifty slips below 17,011 mark."
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