What Happened With Market Today

Equity benchmarks advanced for the second consecutive session and logged the biggest single-day gain in two weeks, aided by banking, auto, metals, pharma, and realty stocks. Both mid-cap and small-cap stocks joined the rally in the market. Sensex surged 612 points, tracking gains in index majors Reliance Industries, ICICI Bank, and L&T amid a positive trend in global markets.

Sensex jumped 612 points or 1 percent to end at 56931.56. Similarly, the NSE Nifty advanced 185 points or 1.10 percent to close at 16,955. Hindalco was the top gainer in the Sensex pack, rising around 4 percent, followed by Tata Motor, Bharti Airtel, Sun Pharma, Bajaj Finance, Reliance Industries, and SBI. On the other hand, Power Grid, Wipro, ITC, and SBI Life were the laggards.

There was broad-based buying in the market while mid and small-caps outperformed as the bargain opportunity led investors to accumulate the beaten-down stocks. Rally in the global markets boosted market sentiment and short covering was seen ahead of weekly Nifty and Bank Nifty expiry. US Market gained overnight and both Asian and European markets advanced after the US President Joe Biden, in a national address, did not specify additional travel curbs or business restrictions to combat the omicron variant of the COVID-19 virus.

Among the major index, the realty index witnessed the biggest gains today and surged by 3%. Pharma stocks witnessed fresh buying and surged by 2%. Nifty auto, IT, metal, bank, mid-cap, small-cap Index gained 1-2%. Nifty 500 stocks advance-decline ratio stood at 4:1. India Vix slipped 6% to close at 16.60.

Beaten down realty stocks are witnessing fresh buying after a fall of 10-20% from the recent peak. Rising demand and soft interest rates boosted realty stocks. Brigade gained 8% to close at Rs488. Microtech Developer surged by 7% to close at Rs1212 after the news that the India Ratings & Research reaffirmed the company’s credit rating and revised the outlook to ‘positive’ from ‘stable’. Oberoi Realty Godrej Properties, Prestige Indiabulls Realestae gained 2-5%.

Metal stocks recorded a smart rally on account of improved global demand. Iron ore extended its storming rebound from an 18-month low (2-month high) as moves in China to support its embattled real estate sector bolstered the demand outlook. Hindalco surged 4% to close at Rs463. Nalco surged 5% to close at Rs103. Tata Steel, SAIL, Vedanta gained 2-3%.

Pharma stocks witnessed fresh buying. Divi’s Lab gained 3.5% to close at Rs4563. Sun Pharma advance over 2% to close at Rs797. Aurobindo Pharma, Granules, Strides, Laurus Labs, and Cadila gained 2-4%. Reliance Industries surged over 2% to close at Rs2366 amid 81 lakh shares traded on NSE. Sovereign wealth funds including Singapore’s GIC Pte, Abu Dhabi Investment Authority, and UAE’s Mubadala Investment Co are exploring investments in Reliance Industries Ltd.’s clean energy unit, Mint newspaper reported.

Banking and NBFC stocks like IDFC Bank surged 55 to close at Rs48. ICICI Bank gained 2% to close at Rs732. Indusind Bank, RBL Bank, SBI, and Bandhan Bank gained 2-3%. NBFC major Bajaj Finance surged 3% to close at Rs6771 on account of bargain hunting.

Technical Outlook:

The Nifty index opened the gap up and moved in a positive to range-bound manner throughout the session. The last hour of the session saw a quick pullback and the index inched towards 17000 zones. It surpassed its previous day’s high and closed with gains of around 180 points. It formed a Bullish candle on a daily scale and has been forming higher highs – higher lows from the last two trading sessions. Now it has to cross and hold above 17000 zones, for an up move towards 17200 and 17350 zones whereas support can be seen at 16800 and 16600 zones.

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