Mr Vishal Wagh, Research Head - Bonanza Portfolio
Nifty had a volatile session amid weak global cues and weekly expiry. It closes above 18,250 as bulls maintain the momentum on Dalal street. On the sectoral front, metal, pharma, power, oil & gas, and capital goods indices rose 1-3 percent, while bank and realty indices fell over 0.5 percent each. BSE midcap and smallcap indices ended in the green. Both the indices closed at 18,257 and 61,235 respectively.
The index has once again given a flat to a marginal positive start in today's session. Volatility was visible owing to weekly expiry with wild swings on both sides. Going ahead 17,940 -18,000 will be good short-term support for upcoming trading sessions and on the upside 18,340 will act as new immediate resistance. A hammer candlestick pattern is visible on daily charts indicating that the steam is cooling off and we can see sideways or profit booking sessions in the coming days. The structure of the index is in favor of bulls. Market breadth has remained at 2:1 with 36 stocks on the advancing side & 14 stocks on the declining side.
Globally, sentiments were dampened with the release of US inflation data. the U.S. CPI was strong but not materially enough to push FOMC expectations even further. On the domestic front, the CPI inflation rate crossed 5.5% though only marginally to 5.59% in December 2021. It was 4.59% in December last year. The most concerning is the sharp deceleration in the growth of the Index of Industrial Production (IIP) at 1.4% in November 2021. A significant slowdown in the manufacturing sector growth (0.9%) in particular, is a matter of concern as this will also have an impact on employment.
Tata Steel, JSW Steel, Sun Pharma, Coal India, and UPL were the top Nifty gainers. Losers were Wipro, Asian Paints, HDFC Bank, Kotak Mahindra Bank, and IndusInd Bank.