The stock market indices rebounded on December 21 with all sectoral indices in green. After a three-day losing streak, the index finally managed to close on a green note, after a gap-up opening. The benchmark index made an intraday high at 16,936.40 levels, but showed correction from the higher level and at 16,770.85-level with a gain of 156.65.
At close, the Sensex was up 497 points or 0.89 percent at 56,319.01. The broad-based Nifty was up 156.60 points or 0.94 percent at 16,770.80. About 2,204 shares have advanced, 1,033 shares declined, and 111 shares are unchanged. BSE midcap and smallcap indices gained over 1 percent each.
Bank Nifty closed the session at 34,607.85 level with a moderate gain of 168 points. On the sectoral front, all the indices ended in a green note, while Nifty Metal, Media and IT were the top gainers. Stocks like WIPRO, UPL , HCLTECH & ADANIPORT were the top gainers while, POWERGRID, AXIS , CIPLA & BAJFINANCE were prime laggards.
Palak Kothari, Research Associate, Choice Broking said, "On the technical front, the index has formed a DOJI Candle on a daily chart which points to confusion between buyers & sellers. Moreover, the index has been facing resistance from extended trend lines as well as trading below 21&50-DMA which suggests weakness in the counter. However, a momentum indicator STOCHASTIC trading with a positive crossover from an oversold zone on the daily time-frame. At present, the Index has support at 16,600 levels while resistance comes at 17000 levels, crossing above the same can show 17,300-17,400 levels. On the other hand, Bank Nfty has support at 34,300 levels while resistance at 35,000 levels."
Mohit Nigam, Head - PMS, Hem Securities said the Indian equity markets trimmed some of their gains in the late afternoon session, but continued to show a positive trend and traded with gains of around one percent. Buying in Metal and IT counters mainly helped markets to maintain gains, he said.
On the global front, all Asian markets were trading higher shrugging off a bruising Wall Street session, although surging cases of the Omicron coronavirus variant remain a worry for investors. European markets were trading higher after a bruising sell-off in the previous session.
"We witnessed a stellar listing of MapmyIndia with 53 percent gain today. Post-listing, some profit booking is seen in the stock. The initial public offering of CMS Info Systems has been subscribed 29 percent, so far, on the first day of bidding, on December 21."
Nigam added, "On technical front, 16,500 and 17,000 may act as immediate support and resistance for Nifty50. For Bank Nifty 34,100 and 35,100 levels are support and resistance."
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd said, "We are of the view that after a modest pullback rally, the market may consolidate within the range of 16,600 to 16,950. The texture of the chart suggests 16,700 and 16,600 would be key support levels, while 16,900-17,000 would act as an immediate hurdle for the market. However, below 166,00, the uptrend would be vulnerable."
Nagaraj Shetti, Technical Research Analyst, HDFC Securities said, "The negative trend set up in Nifty is still intact and Tuesday's upside bounce has not changed the sentiment so far. There is a possibility of minor upside bounce towards 17,000-17,100-levels in the next few sessions and the market is expected to reverse down from the higher levels. Immediate support is placed at 16,630-levels."
