Bulls strengthened their hold on Dalal Street with the benchmark equity indices extending their gains for the fourth straight week. The 30-share BSE Sensex advanced 2.47 per cent, or 1,478 points, to 61,223 on January 14 from around 59,745 levels on January 7. Likewise, the 50-share NSE Nifty index advanced 2.49 per cent, or 443 points, to 18,255 during the same period.
As many as 41 stocks in the Nifty index settled the week in the green. With a rally of 7.34 per cent, Larsen & Toubro advanced the most in the past five trading sessions. It was followed by Infosys (up 6.34 per cent), Mahindra & Mahindra (up 6.30 per cent), Adani Ports (up 5.98 per cent) and Coal India (up 4.97 per cent).
On the other hand, Wipro and Asian Paints declined 10 per cent and 5.93 per cent, respectively. Nestle India, Hindustan Unilever and Axis Bank also declined between 1 per cent and 3 per cent.
Wipro on Wednesday said its standalone net profit fell by 8.67 per cent to Rs 2,419.8 crore in Q3FY22 from Rs 2,649.7 crore in the corresponding quarter last year. On the other hand, consolidated net profit stood almost flat (up 0.03 per cent YoY) at Rs 2,969 crore.
Among the sectoral indices on the BSE, Power index gained 7.44 per cent during the week. Capital Goods, Realty, Information Technology and Auto indices advanced over 2.50 per cent and 6.20 per cent. Broader indices the BSE Midcap and BSE Smallcap gained 2.40 per cent and 3.06 per cent, respectively.
It seems that investors are not too worried about the rising Covid-19 cases as reports suggest the fast-spreading Omicron variant is not virulent and hospitalisation cases are very low. The World Bank in its latest Global Economic Prospects report has retained India's gross domestic product (GDP) growth forecast at 8.3 per cent for the current financial year 2021-22 (FY22) as what was stated in its last projection released in October 2021. Besides, it upgraded the country's growth forecast for FY23 to 8.7 per cent from the 7.5 per cent estimated earlier. It cited improving growth prospects, especially a reviving private capex cycle for up-gradation.
On the weekly charts, Nifty formed long bullish candles for the third consecutive week. Commenting on charts, Nagaraj Shetti, technical research analyst, HDFC Securities said, "Though, Nifty placed at the highs, there are no signs of any tiredness or reversal at the highs as per smaller and larger timeframe charts."
He further added that the near-term uptrend status of Nifty remains intact and Friday's intraday weakness has not dampened the effort of bulls to sustain the highs. "The emergence of sustainable buying from the dips and the overall positive daily chart pattern signal the next upside target of 18,600 by next week. Immediate support is placed at 18,100 levels," Shetti said.
In the forthcoming week, market participants would zero in on quarterly results of Tata Steel Long Products, Ultratech Cement, Bajaj Finance, ICICI Prudential Life Insurance Company, L&T Technology Services, Trident, Tata Elxsi, Bajaj Auto, ICICI Lombard General Insurance Company, JSW Energy, Larsen & Toubro Infotech, Nelco, Tata Communications, Bajaj Finserv, Havells India, Hindustan Unilever, HDFC Life, JSW Steel, PVR, Reliance Industries, etc., among others.
Meanwhile, the trend in investment by foreign institutional investors and the movement of the rupee against the dollar will also be closely watched.
On the global front from the US, traders will first be eyeing NAHB Housing Market Index on January 17 followed by Redbook on January 19, Initial Jobless Claims, Philadelphia Fed Manufacturing Index on January 20 and finally Baker Hughes Total Rig Count on January 21.
Amol Athawale, deputy vice president-technical research, Kotak Securities said, "The texture of the market is bullish but due to an overstretched rally, Nifty could consolidate between 18,050 to 18,375. For the bulls, 18,375-18,400 would be the immediate hurdle and above the same, the same breakout formation will continue up to 18,500. On the flip side, 18,150 would be the sacrosanct support level to watch out for. If the index succeeds to close below the same, the Nifty could retest 18,050-18,000 levels."
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