The stock market indices traded flat on last day of trading in the week. After a slightly negative opening, the benchmark index recovered further with a marginal loss of 0.1 percent while Bank Nifty closed with 0.26 percent loss at 38,370.40 levels.
At close, the Sensex was down 12.27 points or 0.02 percent at 61,223.03. Nifty was down 2 points or 0.01 percent at 18,255.80. About 1,909 shares have advanced, 1,297 shares declined, and 76 shares are unchanged.
On the sectoral front, Nifty Realty and IT were leading while FMCG, Pharma, Consumption witnessed downward trend. Top gainers in Nifty50 were Tata consumer products (4.42 percent) and TCS (1.80 percent) and top losers were Asian Paints (-2.66 percent) and Axis Bank (-2.57 percent). Almost all the sectoral indices closed in red with Nifty Realty (1.15 percent) being the top gainer.
Mohit Nigam, Head - PMS, Hem Securities said, "The upside streak of benchmark indices was finally broken today as it made a gap-down opening replicating the volatility in global markets. But all early losses were recovered as indices closed with minuscule losses. Investor sentiments were hit as a recent report from United Nations predicted India’s GDP at 6.5 percent in FY22 from its earlier forecast of 8.4 percent Asian markets were also trading in negative territory amid weak signals coming from wall street due to rising cases of coronavirus in the US.
"On the technical front, the key resistance level for Nifty50 is 18,400 and on the downside 18,000 can act as strong support. Key resistance and support levels for Bank Nifty are 38,800 and 37,800 respectively."
Sachin Gupta, AVP-Research, Choice Broking, said, "Technically, the Nifty50 has been trading in a bullish trend from the last couple of days without enabling a selling pressure that indicates a bullish trend. On the daily chart, the recent candle has engulfed the last two days of candle and closed near the day high. The index has also been hovering above the Ichimoku Cloud formation with the positive cross line. A momentum indicator RSI * Stochastic has also indicated a positive crossover. At present, the Index has support at 18,100 levels while resistance comes at 18,350 levels, crossing above the same can show 18,500-18,600 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 rose for the fourth consecutive week rising 2.49 percent in the longest winning streak since the week ended September 24, 2021. Nifty is now close to 18,500-18,600 resistance band. Nifty has made a near double top in the 18,272-18,287 band. A breach of this is necessary for the Nifty to continue its upmove. On falls 18,120-18,130 band could provide support."
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, "Bulls powered through the week with renewed optimism as Nifty gained 2.33 percent and Sensex gaining 2.30 percent. The current economic scenario is quite similar to the one that existed in the early phase of the 2003-07 cycle and investors are expecting that 2022 can potentially witness the unfurling of India's much-awaited capex cycle.
"The Nifty was at 18,219 with gains of 2.33 percent and Sensex was at 61,088 with gains of 2,3 percent during week ended on January 14, 2022. The Nifty small cap index outperformed with gains of 2.98 percent and mid cap index underperformed with gains of 2.25 percent during the week. All the sectoral indices ended in green during the week. Healthcare and IT stocks led the rally, while oil and gas and realty were major laggards. Earnings momentum is likely to continue in Q3 FY22 from Q2 FY22."
Prashant Tapse, Vice President (Research) at Mehta Equities, "Amidst volatility, Nifty ended a tad lower and shrugged off weak global cues. After a gap-down open, the benchmark Nifty staged a smart recovery in late session amidst bargain hunting backed by short covering. The positive takeaway was that Nifty ended a tad below the dotted lines and most importantly, shrugging off depressing overnight Wall Street cues, Asian and European cues and also taking rise in oil prices at its stride. Technically speaking, there is likely to be lots of opportunities on the buy side as long as Nifty stays above 17,889 mark. The immediate goalpost on Nifty is seen at its all-time-high at 18,605 mark."
Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities Ltd, said, "Markets ended a tad lower but buying in late trades helped indices pare losses after a weak opening despite overnight fall in US gauges. The Nifty has formed a bullish candle and is also holding higher bottom series, which support further uptrend. The texture of the market is bullish, but due to an overstretched rally, the market could consolidate between 18050 to 18375. For the bulls, 18375-18400 would be the immediate hurdle and above the same, the same breakout formation will continue up to 18500.
"On the flip side, 18150 would be the sacrosanct support level to watch out. If the index succeeds to close below the same, the Nifty could retest 18,050-18,000 levels. The Bank Nifty has completed one leg of correction and took support near the 9 day SMA. The structure suggests 38,000 and 37,500 would act as strong support zones. Above the same, the uptrend momentum will continue till 39,000-39,300."
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