What Happened With Market Today

The equity market kicked off 2022 on a bullish note on Monday, with the benchmark Sensex surging over 900 points to reclaim the 59,000-level led by gains in financial, banking, auto, and metal stocks. Sensex gauge further strengthened its gains as the trade progressed and went to hit the day’s high of 59,266.39. It finally ended 929 points or 1.60 percent higher at 59,183. Likewise, the NSE Nifty soared 271.65 points or 1.60 percent to settle at 17,626.

Top gainers in the Nifty pack included Bajaj Finance, Bajaj Finserv, ICICI Bank, Tata Steel, IndusInd Bank, and HDFC Bank with their shares rising as much
as 2-4 percent. Dr. Reddy’s, M&M, Tech Mahindra, and Nestle India were the only losers falling up to 1 percent.

Sentiment boosted on account of a rally in the global market and an impressive December auto sales data announcement. Markets are up in anticipation of fresh inflows from foreign institutional investors while net buyers in the capital market, as they purchased shares worth Rs 575 crore. Moreover, the hope of good Q3 results has added fuel to the market. In the global markets, Asian markets ended on a mixed bag while European and US Dow futures gained smartly.

On the NSE platform, sub-indices Nifty Bank, Private Bank, Financial Services, and PSU Bank gained as much as 2-3 percent. Nifty Realty and IT Index gained 1% each while NIFTY Auto Index surged 2%. Both the Nifty mid-cap and small-cap index gained 1% each. India Vix gained 1% to close at 16.45. Nifty 500 stocks’ advance-decline ratio was 3:1.

Beaten down banking and NBFC stocks witnessed fresh buying. Private bank major HDFC Bank surged 3% to close at Rs1520. ICICI Bank gained 3% to close at Rs765. Federal Bank, Kotak Bank, Axis Bank, Canara Bank, and IndusInd Bank gained 2-5%. NBFC stocks like M&M Finance gained over 2% to close at Rs152. After the company said that the Finance says December collection efficiency at 100%. Both Bajaj twins Bajaj Finance and Bajaj Finserv surged 3.5% each.

Auto stocks witnessed fresh buying. Tata Motor climbed up by 3% to close at Rs498 amid 3.3cr shares traded on NSE after the company announced strong December monthly sales data. Eicher Motor gained 5% to close at Rs2718. The company reported strong volume growth in its Royal Field segment during the month of December. Ashok Leyland gained 3% to close at Rs128.

Metal stocks witnessed fresh buying. Tata Steel surged 3% to close at Rs1142 and Vedanta gained 4% to close at Rs364. Coal India climbed up by 6% to close at Rs155. The company reported 15.7% YoY growth in coal offtake during December. SAIL, Nalco, JSW Steel, and Jindal Steel gained 2-4%.

Technical Outlook:

The nifty index opened positive and skyrocketed by heading towards 17650 levels. It witnessed sustained buying interest throughout the day and closed near its day’s high with gains of around 270 points. It formed a strong Bullish candle and has been forming higher highs – higher lows on the daily frame. It surpassed its falling supply trend line on a daily scale and gave a decisive close above 50 DEMA. Now it has to hold above 17500 zones, for an up move towards 17777 and 17900 zones whereas support shifts higher to 17350 and 17200 zones.

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