Early Q3 nos lift mkts; Sensex ends 487 pts up at 49,269, Nifty at 14,485

Volatility index, India VIX, surged 8.5 per cent to 22.4 levels

Stock market updates: Indian equities stayed firm at record high levels during Monday's trading session a as strong kick-start to Q3 earnings, decision to roll out Covid-19 vaccine in the country as early as January 16, and hopes of a greater stimulus package in the US pushed the benchmark S&P BSE Sensex above the 49,000-mark for the first time. The Nifty50, too, inched closer to 14,500 in the intra-day session.

Frontline Sensex hit a record peak of 49,304 in the intra-day deals today before settling 486.8 points, or 1 per cent, higher at 49,269.32 levels. On the NSE, the Nifty50 ended at record closing peak of 14,484.75 levels, adding 137.5 points or 0.96 per cent today. Earlier today, the index touched lifetime high of 14,498. 

IT stocks led from the front and remained top gainers on the indices today. HCL Technologies, Infosys, TCS, and Tech Mahindra surged between 2 per cent and 6 per cent on the BSE today, contributing the most towards Sensex's gains. On the sectoral front, Nifty IT index hit fresh record high of 27,096, ending 3.3 per cent higher at 27,027.7 levels today.

Auto sector, too, buzzed at the bourses today. The Nifty Auto index advanced 3 per cent on the NSE to hit an intra-day high of 10,028.75, its highest level since September 27, 2018. Among individual stocks, Tata Motors rallied 13 per cent to Rs 211 on the NSE. Ashok Leyland, TVS Motor Company, Mahindra & Mahindra, Bharat Forge, MRF and Bajaj Auto from the auto index were up 2 per cent to 4 per cent. The index settled 2.6 per cent higher.

Other individual gainers included HDFC, Maruti, M&M, and ONGC, up in the range of 2 per cent to 3 per cent on the Sensex, while losses in L&T, Bajaj Finance, Reliance Industries, and Bajaj Finserv capped gains. 

Further, profit-booking was seen in the broader markets after the previous week's outperformance. The S&P BSE MidCap index closed 0.08 per cent lower at 19,124.3 levels, while the S&P BSE SmallCap index ended at 18,876 levels, down 0.17 per cent.

Global markets

European stocks slipped from over 10-month highs on Monday as investors booked profits after a strong week, while surging coronavirus cases across the continent and mainland China dragged down energy and mining stocks.

The pan-European STOXX 600 index fell 0.1 per cent, with Germany's DAX index shedding 0.4 per cent and France's CAC 40 down 0.2 per cent.

(With inputs from Reuters)

5:15 PM

TECH VIEW :: Sumeet Bagadia, Executive Director, Choice Broking.

Nifty started the week with gap up opening but in first half of the session saw some profit booking as it made an intraday low at 14383. But later, a sharp recovery was seen as the benchmark index closed at 14484.75 with a gain of 138 points while Bank Nifty didn’t performed well and closed the session at 31998.90 with a moderate loss of 85 points. Nifty Auto and IT has showed good momentum but Metal, Energy and media showed profit booking. Tatamotors, Hcltech, Infy were among the top gainers while Tatasteel, Bajajfinsv , Reliance among the top losers. Index has been trading in Higher high and Higher Bottom Formation which suggest bull trend for upcoming session As the benchmark index has been trading above 21 HMA which also points out strength in the index. Now, the Nifty has a strong support at 14350 levels while upside resistance may come around 14565 levels.

5:14 PM

TECH VIEW :: Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The upside momentum continued in the market for the second consecutive session on Monday post upside breakout of small range of Friday at 14250 and the Nifty closed the day higher by 137 points. After opening on a positive note on Monday, the market shifted into a consolidation in the early part of the session. It later showed a gradual upmove with range in the later half and finally closed near the all time high. The opening upside gap remains partially filled.

A small body of positive candle was formed with long lower shadow. Technically this pattern indicate buy on intraday dips opportunity in the market. The long bull candles of Friday and Monday signal an upside breakout of the small range at 14250 levels. New all time high was formed at 14498 levels.

The short term trend of Nifty continues to be positive. There is a possibility of some more upmove or range movement for the next 3-4 sessions, before showing sharp one day of decline from the new highs. The next upside levels to be watched at 14600-14800. Immediate support is placed at 14380.

 

4:55 PM

MARKET CLOSING COMMENT :: Shrikant Chouhan, Executive VP, Equity Technical Research at Kotak Securities

Another day with tremendous gains for the market. Markets closed higher for the day, led by auto, IT, pharmaceuticals and selected FMCG stocks. During the day, the market fell three times to 14400/48950 levels, but found huge support at those levels to scale higher. Today the market closed at the highest point of the day despite the weakness in US stock futures, rise in the dollar index, and crude prices are at an alarming level of $55. It seems that the market has gained momentum due to the bright possibilities of bold announcements in the forthcoming Union Budget.

Technically, the market has left an Exhaustion gap between today's lows and yesterday's highs. It is an indecisive candlestick pattern at the top of the current movement and traders should take some profit at current levels until the Nifty / Sensex crosses do not cross the 14520/49370 level. Support exists at 14440/49000 and 14380/48900. One should be careful when adding long positions at high level.

4:42 PM

MARKET CLOSING COMMENT :: Keshav Lahoti, associate equity analyst at Angel Broking

Nifty started the week on a positive note and closed up by 1%. Rally was led by auto stocks due to strong demand for vehicles and IT stocks due to better than expected result of TCS for Q3FY21. Nifty and Nifty IT continues its trend of making new all time high. Sectoral indices were mixed. Global cues were negative: Dow Futures, Nasdaq Futures and FTSE were down by 0.7% , 0.5% and 0.5% respectively. We are bullish on the market. Although after the sharp rally, we are concerned about the valuation of the market. We advise investors to book profit in a small portion of their portfolio.

4:29 PM

MARKET CLOSING COMMENT :: Deepak Jasani, Head of Research, HDFC Securities

Indian equity Benchmark indices ended at fresh record closing highs on Jan 11. The Nifty opened gap up and after a minor correction, closed almost at the opening highs.   At close, the Nifty was up 137.50 points or 0.96% at 14,484.80. Over the past two months Nifty has risen almost 20%.

 

Volumes on the NSE were on the higher side compared to recent averages. Among sectors, IT, Auto. FMCG and Pharma were the main gainers while Metals and PSU Bank were the main losers.

Nifty has closed the day with another almost 1% gain on Jan 11. In the process Indian markets were among the best performing markets globally on Jan 11. Positive newsflow including results are pushing indices and stocks higher. A negative advance decline ratio however is a sign of caution after such a steep rise. Typically distribution happens in such times of euphoria, which gets noticed a few days later.

 

 

 

3:58 PM

Currency View :: Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking

We are witnessing a reversal in the dollar index, while political stability in the U.S. and the probability of a further fiscal stimulus package has pushed the long-term US yields higher. Moreover, there is a possibility that the Fed may reduce its bond buying plan towards the end of this year, which could further push US yields higher and consequently hurt the rupee. Back home, with RBI mopping up dollar inflows, the local currency can test 73.80 to 74 levels in the coming sessions.

 

We expect the rupee to trade in a broad range of 73 to 74.20 levels for the rest of this month.

3:56 PM

TECH VIEW :: Rohit Singre, senior technical analyst at LKP Securities

Index opened a day with gap and managed to hold the bullish stream for a day and closed a day near good hurdle zone of 14500 with gains of nearly one per cent forming a dragonfly kind of Doji candle pattern on the daily chart. Going forwards index has shifted its support to 14400-14300 zone if managed to hold above-said levels we may see the index to march towards 14550-14600 zone which is immediate hurdle on the higher side

3:56 PM

MARKET CLOSING COMMENT :: Ajit Mishra, VP - Research, Religare Broking

Markets started the week on a robust note led by positive global cues and strong earnings from IT behemoth TCS. Despite a tepid show by banking stocks, the Nifty managed to end with gains of 1% to close just shy of 14,500 levels. The broader markets underperformed wherein both Midcap and Smallcap ended flat. On the sector front, IT and Auto were the top outperformers in today’s trade whereas Metal, Capital Goods and Oil & Gas ended with losses.

 

The anticipation of better than expected earnings season combined with supportive global cues aided the upbeat start. Going forward, stock-specific volatility would remain high as earnings season would gain pace. Further, key macro data like CPI, WPI and IIP would also be actively tracked by investors. Amid all, we reiterate our positive yet cautious stance on markets and advise aligning positions according to the prevailing trend.

 

3:55 PM

MARKET CLOSING COMMENT :: Vinod Nair, Head of Research at Geojit Financial Services

Improved outlook for 3rd quarter earnings along with strong global cues helped Sensex to breach 49,000 mark. The rally in the market was led by the IT sector backed by firm earnings results, however, small and mid-cap stocks were under pressure. Hopes of a new US stimulus to be unveiled this week created an upbeat movement in Wall Street while profit booking is seen in the European markets. This ongoing rally is being fueled by strong Q3 earnings preview, foreign fund inflow and optimism around Union Budget 2021

3:54 PM

MARKET CLOSING COMMENT :: Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares

Indian markets opened on a positive note despite subdued cues from its Asian market peers and maintained their upward momentum following gains in IT, TECK and FMCG stocks. Healthy buying was observed in blue-chip stocks like Infosys, HCL Tech and HDFC. During the afternoon session the sentiments continued to remain upbeat as India’s exports grew 16.22% YoY to $6.21 billion in the first week of January, mainly driven by healthy growth in pharmaceuticals, and engineering sectors, reflecting signs of revival. Imports during January 1-7 too increased by 1.07% to $8.7 billion as against $8.6 billion in the same period of 2020. Some support also came as Fitch Ratings expects India's economy to contract by a record 9.4% in the current fiscal year ending March 2021 (FY21) amid the shock from coronavirus pandemic but this represents a 1.1% point improvement from its previous forecast, reflecting a stronger-than-anticipated rebound in 3Q 2020. On sectoral front, today's rally was mainly driven by IT, Auto, FMCG and Pharma stocks while laggards were Metals and Banking stocks

3:52 PM

Market stats :: Market breadth marginally tilts towards declines

3:51 PM

Index contributors today :: IT, HDFC duo lift index

3:49 PM

SECTOR OF THE DAY :: Nifty Auto index hits 28-month high

3:48 PM

SECTOR OF THE DAY :: IT stocks log stellar rally, Nifty IT settles over 3% higher

3:46 PM

Broader marker check :: S&P BSE SmallCap underperforms benchmarks