The Indian market that started on a muted note on January 14, tracking weak global cues, managed to close in the green with the bulls taking control. The S&P BSE Sensex rallied nearly 100 points, while the Nifty50 closed a shade below 14,600.
The S&P BSE Sensex closed 91 points higher at 49,584, while the Nifty50 was up 30 points at 14,595.
Sectorally, the action was seen in capital goods, oil & gas, energy, healthcare and FMCG. Profit booking was seen in metals, consumer durables, consumer discretionary and banks.
On the broader markets front—the S&P BSE Mid-cap index rose 0.29 percent while the S&P BSE Small-cap index rose 0.17 percent.
Positive global cues and fall in inflation data helped the sentiment. After strong results from TCS, Wipro, and Infosys, all eyes will be on HCL Technologies that will come out with its December quarter numbers on January 15.
Traders are advised to stay long and watch out for support near 14,500-14,471 levels. On the upside, resistance is seen at 14,750-15,000.
“The positive opening seen in European markets also helped in raising market optimism. The wholesale price inflation for the month of December declined to 1.22 percent due to a decrease in WPI food index from 4.27 percent in November to 0.92 percent,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.
“Positive economic data along with improving quarterly outlook is helping the Indian market to attract more foreign funds, which will keep the market liquidity high even in these high valuations.”
Here is what experts think that investors should do on January 15:
Rohit Singre, Senior Technical Analyst at LKP Securities
The index closed on a positive note at 14,596 and formed a small bullish candle on the daily chart. The index has formed a good base near 14,500. If it holds above 14,500, we may see the index to march north. Any dip around 14,500 will be a buying opportunity.
The immediate resistance is formed at 14,650, above which bullish momentum will begin.
Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services Limited
The Nifty50 formed an Inside Bar and a Bullish candle on the daily scale, with a long lower shadow, indicating that declines were being bought. It continues forming higher lows from the last six sessions but negated the formation of higher highs of the last 15 trading sessions.
The index has to hold above 14,450 zones for a fresh move towards 14,750 then 15,000. On the downside, major supports exiss at 14,300 and 14,200.
Ajit Mishra, VP-Research, Religare Broking Ltd
We may see further consolidation in the index and it would be healthy for markets. The recent rise in volatility on the stock-specific front is along expected lines and we expect this trend to continue during the earnings season.
Participants should be extra cautious in the selection of stocks and focus on risk management.
Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas
The Nifty continued to trade near a rising trendline drawn from the crucial swing highs on the daily chart. It stayed within the range seen on January 13. So, it has formed an inside bar on the daily chart.
This makes boundaries of January 13— 14,435 and 14,653 important support and resistance respectively.
The index can witness further consolidation in this range before going higher and once the swing high of 14,653 is crossed, then the index will be extending higher. The overall short term target continues to be pegged at 15,000.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.