The stock market indices closed higher on first day of trading in the New Year. Indices enticed some more traction and added more points on the Street on the back of solid gains in financial shares and select index heavyweights.
BSE Sensex rallied 929 points or 1.6 percent. The broader Nifty50 closed 272 points 17,625 levels, led by banks and financials.Bank Nifty index was up 2.65 percent at 36,421 on the closing bell.
Among financials, the Bajaj twins - Bajaj Finserv and Bajaj Finance were the top gainers on the BSE, up above 3.38 per cent and 3.47 per cent, respectively. Axis Bank, HDFC Bank and ICICI Bank were up above 2 per cent each.
Traders remained optimistic after growth of eight core infrastructure industries grew 3.1 percent in November 2021 as against 1.1 percent contraction in the same month last year.
Meanwhile, Indian manufacturing activity fell in the month of December, but stayed above the 50-mark that separates growth from contraction. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - eased to 55.5 in December from November's ten-month high of 57.6.
Sentiments were upbeat as the Finance Ministry said that Goods and Services Tax (GST) revenues grew 13 per cent to over Rs 1.29 lakh crore in December 2021, as compared to Rs 1.15 lakh crore GST revenues in the same month last year, mainly due to pickup in economic activity and anti-evasion steps.
Mohit Nigam, Head-PMS, Hem Securities, "In the technical front, Nifty managed to sustain above 17,600 levels. Immediate support and resistance in Nifty 50 are 17,400 and 18,000 respectively. Bank Nifty immediate support and resistance are 36,000 and 37,000 respectively."
Sachin Gupta, AVP Research, Choice Broking, "Technically, the nifty index moved above 50 percent Retracement Levels on a daily chart, which suggests a positive strength in the index. Moreover, the index has also settled above 50-days Simple Moving Averages. A momentum indicator RSI & MACD witnessed a positive crossover on the daily time frame."
"During the day, the index has also moved above the prior resistance of 17,639.50 levels and made a high at 17,646.65 levels. At present, the Index has support at 17500 levels while resistance at 17,800 levels. On the other hand, Bank nifty has support at 36000 levels while resistance at 36,900 levels," added Gupta.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, "On Monday, the market opened with a positive note and both benchmark indices successfully broke key intraday resistance levels. Post-intraday breakout, the rally intensified the positive momentum throughout the day continued. Technically, on daily charts, the Nifty has formed long bullish candle which supports a further uptrend. In addition, after a long time, the Nifty succeed to close above 50 days of SMA."
"We are of the view that, the market is into the strong uptrend but due to temporary overbought situation market may witness some profit booking at higher levels. Hence buying on intraday correction and selling on rallies would be the ideal strategy for the day traders. For traders, 17,550-17,500 would be the key support levels to watch on the Nifty. On the other side, 17,700-17,735 would act as a key resistance level. Below 17,475 on the Nifty uptrend would be vulnerable," he added.
Prashanth Tapse, Vice President, (Research), Mehta Equities Ltd, said, "Positivity greets Dalal Street on the first trading day of 2022. The positive catalyst: GST revenue collected in December 2021 was over Rs 1.29 trillion, 13% higher than the same month last year. December is the sixth month in a row when revenue from goods sold and services rendered stood at over Rs 1 trillion. Bulls will be looking forward to a super-duper profitable 2022..
"Nifty’s next goal post is seen at the 17,777 mark. Technically, the said optimism could reverse and cause a nasty New Year's hangover only if Nifty slips below the 17211 mark."
