Updated on: Tuesday, January 11, 2022, 04:20 PM IST

Markets maintain upward bias to close above key psychological levels; power stocks steal show

Among major gainers on the Nifty were HCL Technologies, Adani Ports, ONGC, HDFC and Tech Mahindra.  JSW Steel, Tata Steel, BPCL, Hindalco Industries and Coal India were among losers./Representational image |

Among major gainers on the Nifty were HCL Technologies, Adani Ports, ONGC, HDFC and Tech Mahindra. JSW Steel, Tata Steel, BPCL, Hindalco Industries and Coal India were among losers./Representational image |


The stock market indices ended higher at the end of trading on January 11. After a flat opening, the index made an intraday low at 17,964.40 levels and managed to close the session above 18000 marks. Bank Nifty closed the session at 38,442.20 level with a gain of 94.30 points.

At close, the Sensex was up 221.26 points or 0.37 percent at 60,616.89. The broader Nifty was up 52.50 points or 0.29 percent at 18,055.80. About 1757 shares have advanced, 1481 shares declined, and 55 shares are unchanged.

On the sectoral front, buying was witnessed in the IT, power, realty stocks, while the metal index was down 1.90 percent and the FMCG index fell 0.4 percent. Stocks like HCL Tech, Adani Port, ONGC, HDFC were the top gainers while, JSW Steel, Tata Steel, BPCL, Hindalco were prime laggards.

In stock specific, Vodafone Idea crashed almost 21 percent after the company announced that government will hold 36 percent stake in the company after the board approved conversion of outstanding obligations into equity.

Palak Kothari, Research Associate, Choice Broking said, "On the technical front, the index has been trading with higher high & higher low formation for the last three days and sustained above the falling trendline which suggests an upside rally in the counter. Moreover, the index has been trading above 21&50-DMA as well as a momentum indicator MACD & STOCHASTIC are trading with a positive crossover on the daily time-frame which suggests strength in the counter. At present, the Index has support at 17,700 levels while resistance comes at 18,100 levels, crossing above the same can show 18,200-18,300 levels. On the other hand, Bank Nifty has support at 37,800 levels while resistance at 38,800 levels."

Deepak Jasani, Head of Retail Research, HDFC Securities, said, "Nifty has shown deceleration in the upward momentum on January 11 with advance decline ratio turning slightly negative. This could be an indication of the trend getting mature and Nifty showing signs of fatigue after the recent sharp upward correction. 17,945-18,109 could be the band for the Nifty in the near-term."

Mohit Nigam, Head - PMS, Hem Securities, said, "Asians markets are giving mixed cues due to rising cases of Omicron and record hospitalisation in US due to COVID-19 on Monday. Meanwhile, TRAI in its latest report announced that revenues of telecom sector declined on YoY for Q2FY2022. The latest report published by Reserve Bank of India showed Foreign Direct Investment by Indian companies fell by over 8 percent in December 2021. Investor sentiments remained positive as Commerce and Industry minister Piyush Goyal called upon the concerned stakeholders for suggestions to take India to the top 25 in the Global Innovation Index. Last year India was positioned at 46."

Prashanth Tapse, Vice President (Research), Mehta Equities Ltd, said, "Nifty steadied above 18,000 mark as traders’ await ECB Lagarde's speech and Powell’s Testimony. Bulls retained control as US Dollar index and the 10-year US Treasury yield slipped after hitting the 1.80 percent level. All eyes now shift to FOMC Chairman Jerome Powell's nomination hearing later Tuesday evening. Also commanding attention will be the December data on US inflation and retail sales that will trickle on Wednesday and Friday. Technically speaking, there is likely to be lots of opportunities on the buy side as long as Nifty stays above 17,721 mark. The immediate goalpost on Nifty is seen at 18,307 mark and then aggressive targets at its all-time-high at 18,605 mark."

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Published on: Tuesday, January 11, 2022, 03:49 PM IST