The Indian equity benchmark indices started the week on a strong note on January 9, snapping a three-day losing streak on positive global cues and buying across sectors.
The 30-pack Sensex closed 846.94 points, or 1.41 percent, higher at 60,747.31 and the broad-based Nifty gained 241.70 points, or 1.35 percent, at 18,101.20.
Amid supportive global cues, fanned by hopes of a less aggressive rate hike by the US Fed and the reopening of the Chinese economy, the market started on a positive note and extended gains as the day progressed. There was some profit booking but last-hour buying helped the benchmarks close near the day’s high.
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Stocks and sectors
M&M, TCS, HCL Technologies, Tech Mahindra and IndusInd Bank were among the top gainers on the Nifty. The big losers were Titan Company, Bajaj Finserv, Grasim Industries, Bajaj Auto and HDFC Life.
Among sectors, Nifty bank, auto, energy, information technology, infra, metal and PSU bank indices were up 1-2.8 percent.
The BSE midcap index was up nearly a percent and smallcap index 0.5 percent.
On the BSE, all the sectoral indices ended in the green with IT, power, auto, bank, capital goods, oil & gas and metals up 1-2.5 percent.
More than 100 stocks, including, Abbott India, Godfrey Phillips India, IDBI Bank, Jindal Steel & Power, Rama Steel Tubes and TVS Srichakra, touched their 52-week high.
Among individual stocks, a volume spike of more than 100 percent was seen in Zee Entertainment Enterprises, Ipca Laboratories and Power Grid Corporation.
A long build-up was seen in Syngene International, M&M and Britannia Industries, while a short build-up was seen in Vodafone Idea, Balrampur Chini Mills and Hindalco Industries.
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Outlook for January 10
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
The Nifty, which ended lower on January 6, had fallen to the 20 WMA, daily lower Bollinger Band and the 50 percent retracement of the September-December 2022 rally. These parameters were present near the lower end of the short-term consolidation range, which is 17,800. Thereon, the index witnessed a smart bounce on January 9.
The index can climb to 18,200-18,260 on the higher side. The level of 18,000 will act as immediate support. The overall structure of the last few sessions shows that sharp moves in both directions are part of the short-term consolidation process.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
A positive undercurrent in global markets had a rub-off effect on local equities as investors resorted to short-covering after last week’s correction, helping key benchmark indices recapture their psychological levels. With China steadily lifting covid restrictions, there are hopes that demand may pick up, which could give breathing space for markets already battling recession fears, higher interest rate regime and benign inflation levels.
Despite the recovery, markets may remain choppy as most of the lingering worries are yet to subside. Technically, a strong bullish candle on daily charts and promising reversal formation is indicating a further uptrend from the current levels.
For bulls, 18,000 would be the sacrosanct support zone and above it, the index can rise to 18,200-18,270. The uptrend, however, would be vulnerable below 18,000 and the index can retest 17,950-17,900.
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