Bulls continued to maintain dominance on Dalal Street on Wednesday. Indian equity markets extended gains to settle on a positive note for the fourth consecutive session today, led by Auto, Realty, Metal and power stocks. While BSE Sensex rose 533.15 points or 0.88% to end at 61,150.04, Nifty settled 156.50 points or 0.87% higher at 18,212.30. Bank Nifty ended 285 points or 0.74% higher at 38727. Among sectors, Metal, Power, Auto, Oil & Gas and Realty gained 1-2 percent, while IT and Pharma indices ended flat today. In broader markets, BSE midcap and smallcap indices ended 0.7-1 percent higher. M&M, Bharti Airtel, Reliance Industries, IndusInd Bank and ONGC were the top Nifty gainers. On the other hand, Titan Company, TCS, Shree Cement, Britannia Industries and Cipla were the laggards.
Mohit Nigam, Head PMS, Hem securities
“Investor sentiments magnified as the world bank increased the growth forecast for India to 8.7% for FY23 from its earlier prediction of 7.5%. This can be attributed to resurgence in the private capex cycle. Now, all eyes are set on the industrial and retail inflation data that will be out later in the day. Much awaited results of three IT heavyweights are also scheduled to be out later in the day. On the technical front, the key resistance levels for Nifty50 are 18400 and on the downside 18000 can act as strong support. Key resistance and support levels for Bank Nifty are 39000 and 38400 respectively.”
Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd
“Globally markets rallied after Fed Chairman Jerome Powell indicated confidence in the U.S. economic recovery and reiterated that the central bank would tackle inflation. Adding to the positive sentiments, Chinese inflation data showed that the consumer price index (CPI) contracted 0.3% month-on-month while growing 1.5% y-o-y in December. Also country’s producer price index (PPI) grew 10.3% y-o-y. Inflation data to be released in India and US later today will be closely monitored by the market. Also the results from index heavyweight TCS, Infosys and Wipro would guide the sentiments. Going forward we expect market to remain steady on back of hopes of strong corporate earnings, sentiments around upcoming budget and improvement macroeconomic data.”
Vinod Nair, Head of Research, Geojit Financial Services.
“Led by realty, auto, energy and banking stocks, benchmark indices continued its winning streak for the 4th consecutive day despite fast spread of covid cases. Globally, sentiments were positive ahead of the release of US inflation data as the Fed Chair’s testimony eased inflationary worries. Realty stocks continued its upward rally on healthy business updates resulting in improved outlook. The initial result updates of major IT firms will determine the momentum of the week ahead.”
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
“The market has successfully closed above 18200 and we should be looking forward to 18400-18500 as the next target zone. If we get intraday slips or corrections, traders can look at these opportunities to buy into the index for higher targets.”