What Happened With Market Today

Equity benchmark Sensex stretched its winning run to the fourth straight session to reclaim the 60,000-level as robust gains in banking and financial stocks offset profit-booking in the IT pack. Equity Index advanced for the fourth consecutive session and closed above 60k, their longest winning streak in over two months since the seven-day streak ended Oct. 18, 2021, aided by banking, NBFC, metal, auto, and oil and gas stocks while IT stocks witnessed profit booking.

Sensex surged 367 points or 0.60 percent to end at 60,223. The index last closed above the key 60,000-mark on November 17, 2021. Similarly, the broader NSE Nifty climbed 120 points or 0.70 percent to finish at 17,925. Bajaj Finserv was the top gainer in the Nifty pack, spurting over 5 percent, followed by Bajaj Finance, Kotak Bank, Axis Bank, Tata Steel, HDFC Bank, Asian Paints, Maruti, and ICICI Bank. On the other hand, Tech Mahindra, Infosys, HCL Tech, Wipro, PowerGrid, and Dr Reddy’s were among the major laggards, dropping as much as 2.87 percent.

However, overall market breadth was equal despite a rally in the market. Nifty 500 stocks advance-decline ratio was 1:1 on account of profit booking in IT and Pharma stocks. Nifty small-cap and mid-cap stocks were absent in the rally.

Strong FIIs inflow and hope of good quarterly results boosted market sentiment. Few private lenders reported double-digit business growth during the third quarter. However, the concern of rising covid cases globally pulled down the market. US and Asian markets traded weak ahead of the release of the US Fed meeting minutes while European markets are trading flat.

Among the major Index, Bank Index witnessed the biggest gainer today and surged by 2.5%, BSE Finance Index climbed up by 2%. The Nifty metal index gained 1.5%. Nifty Auto and realty Index advance 1% each. On the other hand, both mid-cap and small-cap indexes ended flat. India Vix gained 6% to close at 17.20.

Among the banking and NBFC stocks, Both Bajaj Finance and Bajaj Finserve witnessed a smart rally in the hope of good quarterly results. Shares of Bajaj Finance rose over 4 percent to close at Rs7671 (volume on NSE at 26lakh) after the company posted a strong business update. Bajaj Finance’s deposit book stood at approximately Rs 30,000 crore as of December 31, 2021, as compared to Rs 23,777 crore as of December 31, 2020. Bajaj Finserve climbed up by 5% to close at Rs17988. Shares of AU Small Finance Bank rose 7%, the biggest intraday gain in seven months, to Rs 1,149 after the company reported its Q3 business update. Total Deposits grew by 13% in Q3 to Rs 44,278 crore over the preceding quarter. It has recorded over 1cr shares traded on NSE.

Banking stocks like ICICI Bank surged 2% to close at Rs788 amid 2cr shares traded on NSE. SBI gained 2% to close at Rs492 while it has recorded 2.5cr shares traded on NSE. HDFC Bank gained 2% to close at Rs1565. Kotak Bank climbed up by 4% to close at Rs1922. RBL Bank, Bandhan Bank, Axis Bank, and Canara Bank gained 1-2%

IT stocks witnessed profit booking as a concern of fall in USDINR. USDINR fell to 74.4 the from the recent high of 76.2. Tech major Infosys slipped over 3% to close at Rs1845. Tech Mahindra, LTTS, LTI, Coforge, TCS, HCL Tech, and Mphasis slipped between 1-3%.

Metal stocks witnessed fresh buying. Tata Steel gained 2.5% to close at Rs1178 and SAIL gained 3% to close at Rs113. JSW Steel, Nalco, NMDC, and Hindalco gained 1-3%. Auto stocks like Eicher Motor gained 3% to close at Rs2788. Bajaj Auto, Ashok Leyland, TVS Motor, M&M, and Maruti gained 1-3%. Pharma stocks like Lupin, Aurobindo Pharma, Torrent Pharma, Sun Pharma, and Cadila ended red on account of profit booking. Energy stocks like Reliance gained marginally to close at Rs2470 while BPCL surged over 2% to close at Rs395.

Technical Outlook:

The Nifty index opened positive and headed towards 17950 zones. It continued its winning streak of the last fourth straight sessions led by buying interest at every key level. It gave its highest daily close of the last 35 sessions and closed with gains of around 120 points. It formed a Bullish candle on a daily scale and has been forming higher highs – higher lows from the last four sessions. Now it has to hold above 17900, for an up move towards 18000 and 18200 whereas support shifts higher to 17777 and 17600 zones.

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