The benchmark indices zoomed for the fourth straight session led by bank, metals, auto and oil and gas stocks. After a positive opening, the index continued its upside momentum and made an intraday high at 17,944.70 level and managed to close the session at 17,925.25 level with a gain of 120 points.
While Bank Nifty closed the session at 37,695.90 level with a gain of 855.75 points. The broader indices, the BSE Mid cap index and Small cap index were trading with marginal gains.
At close, the Sensex was up 367.22 points or 0.61 percent at 60,223.15. The broader Nifty was up 120 points or 0.67 percent at 17,925.30. About 1,649 shares have advanced, 1,495 shares declined, and 74 shares are unchanged.
On the sectoral front, mostly indices managed to close on the green note as Nifty Bank, and Nifty Financial services were the top gainers While Nifty IT, Pharma ended on a red note. Stocks like Bajaj Finserv, Bajaj Finace, JSW Steel, Kotak Bank were the top gainers while, Tech Mahindra, Infosys, HCL Tech, Divis Lab, were prime laggards.
Sahaj Agrawal, Head-Research Derivatives, Kotak Securities said "Markets have crossed a significant barrier of 17,800 and managed to close above the same. I believe from an uncertain/volatile environment Nifty is now headed for a directional move. We expect 19,000-19,500 levels in the medium term. Overall participation is expected to take place– Value is seen in Metals, Energy, FMCG, and Banking stocks; IT stocks can be bought on correction post recent run-up."
Palak Kothari, Research Associate, Choice Broking said, "On the technical front, the index has been trading with higher high and higher low formations from the last four trading sessions as well as given breakout above the upper band of falling channel formation which suggests an upside rally in the counter."
"On a daily chart, the index has confirmed the Three White Soldier candlestick pattern which points out bullish momentum for upcoming sessions. Moreover, the index has been trading above 21&50-HMA which suggests strength in the counter. However, A momentum indicator MACD trading with a positive crossover on the daily time-frame." Kothari added.
"At present, the Index has support at 17,500 levels while resistance comes at 18,000 levels, crossing above the same can show 18,200-18,300 levels. On the other hand, Bank nifty has support at 36,800 levels while resistance at 38,000-levels," he added.
Mohit Nigam, Head - PMS, Hem Securities , said, "On technical front, Nifty's immediate support and resistance can be 17,600 and 18,200 respectively. While for Bank Nifty 37300 and 38200 may act as immediate support and resistance."
Deepak Jasani, Head-Retail Research, HDGC Securities said, "Nifty rose for the fourth consecutive session; however the advance decline ratio is now only marginally above 1:1 suggesting likelihood of Nifty starting to correct soon under profit taking in large caps. 17,945-18,023 could be the resistance in the near term while 17,827 could be a support."
Prashanth Tapse, Vice President (Research), Mehta Equities Ltd, said, "The New Year’s jubilant mood continued on Dalal Street and the positive takeaway was that the index outperformed its global peers and most importantly, the street even shrugged off the rising US 10-year Treasury Yields which have recaptured the 1.68 percent levels. The risk-on mood prevailed despite elevated US bond yields, a modest USD strength, continuous surge in new COVID-19 cases and a hawkish Fed backdrop. All bullish eyes are on Nifty’s all-time-high at 18,605 mark."
