Nifty & Sensex: In addition to stock-specific movements, the market is likely to trade inside the present range, according to Siddhartha Khemka of Motilal Oswal Financial Services.
The benchmark indices climbed on January 12 morning to inch closer to all-time highs, aided by buying in information technology equities following encouraging reports from bigwigs TCS and Infosys.
The Nifty was up 162.10 points, or 0.75 percent, at 21,809, and the Sensex was up 566.61 points, or 0.79 percent, at 72,288 at 10.35 am. Approximately 1,969 shares saw gains, 1,143 saw decreases, and 83 saw no change. “The Nifty will be able to consolidate around 21,600 levels thanks to the strength of Reliance and resilience in IT companies. HDFC Bank results on January 16 would be carefully followed by the market for signals to the direction of Bank Nifty“, stated V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
The market as a whole also increased. The smallcap index had a 0.6% increase and the midcap index saw a 0.3% increase. Sector-wise, the Nifty IT index led the gains, shooting up to 5% as market leaders Infosys surged 5% and TCS jumped 3% in morning trade, the day after the company released its results for the December quarter.
Additionally trading in the green were Nifty Pharma, Nifty PSU Bank, Nifty Bank, and Nifty Metal.
Nifty Auto, Nifty Pharma, Nifty FMCG, Nifty Energy, and Nifty Infra were all trading lower.
According to Siddhartha Khemka, Head-Retail Research at Motilal Oswal Financial Services Ltd, investors would likely trade cautiously ahead of the publication of inflation data later in the day. As a result, we expect the market to trade within its current range, with stock-specific actions. TCS and Infosys’ Q3 earnings, management comments, and forecast will provide insight into the sector’s future prospects, he noted.
Technical View
According to Sheersham Gupta, Director and Senior Technical Analyst at Rupeezy, the Nifty created an unsure spinning top candle on the technical charts, indicating that there is indecision in the market.It is noteworthy that the Nifty’s support level has moved from 21,500 to 21,600. It is only a matter of time until this range is breached, as the market has been trading in the narrow range of 300 points for more than two weeks, he stated.
With the volatility index India VIX decreasing over the past three days, a breakout looked possible, Gupta added. A major barrier for Bank Nifty would be 48,000, which would be indicated by a lot of call writing. It is expected that a strong short-covering rally would be sparked by a clear breakout above this level. The lower-end support at 46900 is still in place on the downside, according to Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities. He went on, A close below the support level could increase selling pressure.
Ajit Mishra, SVP of Technical Research at Religare Broking Ltd., stated, We feel participants should prefer hedged positions, with the beginning of the earnings season and wait for clarity.
