The Indian markets received a much-needed boost from the bulls in the trading session on January 7, with the frontline indices ending in the green after two days of back-to-back losses.
This rebound in the markets can be attributed to positive global cues and the absence of major concerns regarding the HMPV virus. The rally was supported by heavyweights such as Reliance Industries, ICICI Bank, and HDFC Bank.
Despite ending the session in the green, the front-line indices gave up their early gains towards the end as investors appeared to be booking profits at higher levels. In line with the frontline indices, the broader market also came off its highs during the session but managed to outperform.
The Nifty 50 concluded the session with a gain of 0.39% at 23,707, while the Sensex wrapped up the session at 78,199, 0.30% higher than the previous close. The Nifty Smallcap 100 index finished the session with a gain of 1.35% at 18,673, and the Nifty Midcap 100 index ended the trade with a gain of 0.89% at 56,869 points.
In the last two sessions, the Sensex and the Nifty 50 fell over 2 per cent each, primarily because of sustained selling by foreign institutional investors amid a sustained rise in the US bond yields and the emergence of HMPV virus cases in India.
Barring Nifty IT, all major sectoral indices settled in the green, with Nifty Oil & Gas emerging as the top sectoral gainer, up 1.64%. It was followed by Nifty Media, Nifty Energy, Nifty Metal, Nifty CPSE, and Nifty Infra, which rallied between 0.8% and 1.36%.
In terms of individual stocks, Kirloskar Brothers emerged as the top performer among Nifty 500 constituents. The stock rallied 16% to ₹2,274 apiece, followed by Aegis Logistics, Intellect Design Arena, PTC Industries, Rashtriya Chemicals, Vijaya Diagnostic Center, Biocon, Just Dial, and 24 other stocks that ended with gains of over 4%.
Commenting on today's market performance Vinod Nair, Head of Research, Geojit Financial Services said, "Amid positive global cues indicating no major concerns regarding HMPV, the domestic market partially recovered from yesterday's sharp sell-off but traded within a range ahead of the critical first advance estimates for India's FY25 GDP. This comes in the context of moderated growth expectations, as the RBI recently revised its growth projection downwards."
"In the near term, the market is expected to remain cautious, awaiting signs of earnings recovery during the upcoming result season while also dealing with ongoing FII selling, which is driven by the strengthening dollar, rising US bond yields, and reduced expectations of further rate cuts," he added.
Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates said, "Technically, on the daily chart, Nifty formed an inside bar candle. The index will face resistance near 23,900 levels, where its 200-Days Simple Moving Average (200-DSMA) is placed. On the downside, the index held 250-DSMA support near the 23,500 level. In the short term, Nifty is expected to consolidate between 23,500 and 23,900, with a breakout on either side, further determining the direction of the market."
Shrikant Chouhan, Head of Equity Research at Kotak Securities, said, “For day traders, the key resistance zones for Nifty 50 are at 23,800 and for Sensex at 78,500. If the indices manage to trade above these levels, they could bounce back to 23,900-23,950/78,800-79,000.”
"On the other hand, if they fall below 23,600/77,900, selling pressure is likely to accelerate. Below these levels, the market could slip to 23,500-23,425/77,500-77,400. The current market texture is non-directional; therefore, level-based trading would be the ideal strategy for day traders," Shrikant added.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
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