The stock market indices ended the day on a jubiliant note led by IT, Auto, capital goods and banking stocks. All the major sectoral indices ended in green today.Nifty gained for the second consecutive session on December 28 amidst low volumes and aided by positive global cues. Nifty opened gap-up and kept rising before a V shaped fall and recovery happened post 14:30 hours.
On a day when the volumes on the NSE were in line with the last 3-4 day average but lower than a month’s average, Consumer Durables, Capital Goods, Auto and IT indices gained the most. BSE Smallcap and Midcap indices rose 1.43 percent and 0.95 percent respectively, said Deepak Jasani, Head of Retail Research, HDFC Securities.
At close, the Sensex was up 477.24 points or 0.83% percent at 57,897.48. The Nifty was up 147 points or 0.86 percent at 17,233.30. About 2,519 shares have advanced, 773 shares declined, and 99 shares are unchanged.
Among the top winners on the Nifty were Asian Paints, M&M, Titan Company, UltraTech Cement and Sun Pharma while among major losers were IndusInd Bank, Power Grid and ICICI Bank.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, said, "Domestic market is drawing strength from upsurge in global equity indices, which have been steadily moving up in recent sessions after correcting sharply on concerns related to the Omicron variant, likely interest rate hikes in key developed economies going ahead and the rising inflation world wide. After a long time, the Nifty succeeded to close above the 20 day SMA which is broadly positive. The short-term texture is bullish but due to gains in recent sessions, bulls may prefer to take a temporary pause near 17,275-17,300 levels. Trading setup suggests a quick intraday correction if the Nifty trades below 17,180, and below the same the correction wave could move up to 17,100-17,160 levels. On the other hand, above 17,200, the index uptrend continuation formation will continue up to 17,300 and further upside could lift the index up to 17,370."
Jasani said, "The Nifty rose for the second consecutive session with advance decline ratio rising sharply to much above 1:1 even as volumes remain on the lower side. This reflects the lower presence of institutional players due to which traders are having a field day. Nifty will now face resistance in the 17,298-17,379 band, while 17,155 could provide support. The broader markets could face some serious profit taking towards this weekend."
Prashanth Tapse, Vice President (Research), Mehta Equities Ltd. said, "The Nifty rose in today’s trade taking over the positive baton from overnight strong positive cues at Wall Street. The positive take away was that Nifty maintained its uptrend despite continued surge in global coronavirus cases. The strength in today’s trade suggests that the street seems quite confident that it can overcome the challenges of the Omicron variant. Technically, the ongoing upbeat bullish mood shall take Nifty to 17,500-17,750 zone with an interweek-perspective. That said, the optimism could reverse and cause a nasty New Year's hangover only if Nifty slips below 16,833-mark."
Sachin Gupta, AVP-Research, Choice Broking said, "Technically, the Nifty index has settled above the Middle Bollinger Band & 21-days SMA, which suggest a bullish strength for the coming day. A momentum indicator RSI & Stochastic witnessed a positive crossover along with a MACD indicator. Also, the Nifty has managed to sustain above the immediate hurdle of 17,200 levels, which supports the fresh buying interest among the trades. At present, the Index has support at 17,000 levels while resistance at 17,400 levels. On the other hand, Bank Nifty has support at 34,700 levels while resistance at 35,600 levels."
Nagaraj Shetti, Technical Research Analyst, HDFC Securities said, "The market continued with strength on the upside and the overall chart pattern signal that the Nifty could breach the next important resistance of 17,350 in the short-term. Hence, any decline from the highs could be a buying opportunity. Immediate support is placed at 17,120 levels."
On the technical front, overall structure looks positive for Nifty 50 as it manages to sustain well above 17,100-17,200 levels. 17,000 and 17,500 are immediate support and resistance in Nifty. For Bank Nifty, 34,600 and 35,700 are immediate support and resistance, said Mohit Nigam, Head-PMS, Hem Securities.
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