The Indian benchmark indices ended higher for the third consecutive session on January 11, supported by information technology, power and realty names, however, selling in metals stocks restricted gains.
The market started the day on a flat note amid weak global cues and remained rangebound throughout the session. The Sensex closed 221.26 points, or 0.37 percent, to end at 60,616.89, and the Nifty rose 52.50 points, or 0.29 percent, to close at 18,055.80.
“Domestic benchmark indices showcased a flattish trend with positive bias as the market weighed the expectations of a strong quarter amid concerns over rising cases, supply issue and inflationary pressure,” said Vinod Nair, Head of Research at Geojit Financial Services.
The global market was on the edge as the Federal Reserve meeting minutes hinted at rate hikes and elevated US inflation as they waited for the American inflation data.
“Domestic inflation levels are also likely to be significant due to unfavourable base effect, though food prices have declined during December,” he said added.
HCL Technologies, Adani Ports, ONGC, HDFC and Tech Mahindra were the top Nifty gainers. Losers were JSW Steel, Tata Steel, BPCL, Hindalco Industries and Coal India.
Among sectors, the Nifty metal index fell 2 percent, while IT index added 1 percent.
Broader markets underperformed the main indices, with the BSE midcap and smallcap indices ending flat.
Stocks and sectors
On the sectoral front, BSE IT, power and realty indices gained 0.7-1.8 percent, while the metal index shed over 2 percent.
A long build-up was seen in Adani Enterprises, Motherson Sumi and Au Small Finance Bank, while there was a short build-up in Vodafone Idea, GMR Infra and SAIL.
Among individual stocks, a volume spike of more than 400 percent was seen in Vodafone Idea, Aditya Birla Capital and Indus Tower.
More than 500 stocks, including Visa Steel, Thermax, Sunteck Realty and Adani Enterprises, hit a 52-week high on the BSE.
Technical View
The Nifty formed a bullish candle on the daily scale and gave its highest daily close of the last 40 sessions.
“The Nifty has to hold above 18,000, for an up move towards 18,200 and 18,400 levels, whereas support shifts higher to 17,950 and 17,850 zones,” said Chandan Taparia, Analyst-Derivatives, Motilal Oswal Financial Services.
Outlook for January 12
Palak Kothari, Research Associate, Choice Broking
On the technical front, the index has been trading with higher high and higher low formation for the last three days and sustained above the falling trendline, which suggests an upside rally in the counter.
The index has also been trading above 21 and 50-day moving average. Momentum indicator MACD and Stochastic are trading with a positive crossover on the daily time-frame, which suggests strength in the counter.
The Nifty has support at 17,700, while resistance comes at 18,100, a breach of which can take the index to 18,200-18,300. The Bank Nifty has support at 37,800 and resistance at 38,800.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The index again gave a strong close. We should look forward to higher targets for the Nifty, with 18,400-18,500 is a distinct possibility.
Strong support lies at 17,700 and as long as it holds, a corrective wave can be looked at as an opportunity to accumulate long positions.
Rahul Sharma, co-owner, Equity 99
For the Nifty50, 18,000 will act as strong support. If the level is broken, the index can slip to 17,880.
While on the upper side, 18,125 will act as a strong resistance. Once it is crossed, we may see 18200 and 18,280 levels
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