Bulls Hold Its Firm Stance; Nifty, Sensex Trail Gaining Route With Record-levels

The Indian stocks traded higher to maintain its eight-days consecutive winning streak tracking the asian peers and overnight rally in the US market.

The National stock exchange (NSE) Nifty 50 index closed 0.57 per cent higher at 21,778, whereas the S&P Bombay Stock Exchange (BSE) Sensex settled 0.52 per cent higher at 72,410 levels.

In the Nifty50 index, Coal India traded highest with 4.2 per cent gains and M&M, Hero MotoCorp, NTPC, Dr Reddy, BPCL, Power Grid and Nestle gained more than 2 per cent.

Conversely, nearly one fifth stocks traded in the red zone with Adani Enterprises, Adani Ports and Larsen & Toubro traded lowest.

Analysts Note
“Markets witnessed bullish bets on the monthly F&O expiry day, indicating that the risk-on sentiment is likely to continue going ahead on hopes of a strong local macro play in the new year. The waning higher inflation concerns and expectations of an early rate cut in the world's largest economy has further strengthened hopes that India's growth momentum would continue further thus boosting investors' confidence,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.

Overall, Nifty has exhibited a steadfast bullish trend, with immediate support levels identified at 21,700 and 21,600. Positional traders are advised to maintain their holdings in Nifty, with a recommended stop loss set at 21,500, said Mandar Bhojane, Research Analyst, Choice Broking.

Analysing the Open Interest (OI) data, it is noteworthy that the call side displays the highest OI at the 22,000 level, closely followed by the 21,100 strike prices. Conversely, on the put side, the 21,500 strike price boasts the highest OI. These indicators suggest a cautiously optimistic sentiment among market participants, added Bhojane.

Sectoral Movement
In terms of sectoral performance, FMCG and Pharma witnessed 1.35 per and 1.23 per cent surge, whereas PSU Banks  rallied more than 1 per cent. Among the sectoral indices, only IT remained muted during the session and slumped 0.14 per cent.

Besides, the more domestically focussed indices, mid-cap and small-cap traded higher with gains of 0.56 per cent and 0.79 per cent respectively. 

Among Nifty 50 mid-cap stocks state-run Hindustan Petroleum and SAIL traded highest with 9.38 per cent and 6.41 per cent gains respectively.  Honeywell Automation, Tata Consumer, Lupin and PNB also traded with more than 4 per cent gains.

Conversely, Cummins traded lowest with 2.16 per cent gains, while ABB India, Idea, Voltas and M&M Financial Services traded more than 1 per cent lower.

Stocks Specific
Man Industries closed with 5.2 per cent gains at Rs 266 after the firm declared successful testing of its pipe to transport safe hydrogen.

Stocks of Suzlon Energy settled with nearly 3 per cent gains at Rs 38.15 after the firm awarded an order for the development of a 300 megawatt (MW) wind project for Apraava Energy.

Zomato stock traded 2.5 per cent lower due to Rs 402 crore show-cause notice from the GST Department.

Coal India surged 4.2 per cent to Rs 380.9 after the brokerage firm, Motilal Oswal raised the target price to Rs 430 and recommended ‘buy’ rating.

In the IPO segment, Azad Engineering listed with 38 per cent premium and settled at Rs 677 with 29 per cent gains.