Stock market: Indian equity indices closed with gains for the third consecutive trading session on January 16. Nifty has managed to close above 23,300. At the end of the trading session, Sensex closed at 77,042.82, up 318.74 points or 0.42 percent, and Nifty closed at 23,311.80, up 98.60 points or 0.42 percent. Today about 2669 shares rose, 1132 shares declined and there was no change in 101 shares. HDFC Life, Shriram Finance, SBI Life Insurance, Bharat Electronics, Adani Ports were the biggest gainers in Nifty. While the biggest losing stocks included Trent, Tata Consumer, Dr Reddy’s Labs, HCL Tech and Wipro. A rise of 1 percent was seen in BSE Midcap Index and 1.4 percent rise in Smallcap Index.
Talking about sectoral indices, except durable goods, IT, FMCG, pharma, all other sectoral indices closed in the green. In which metal, media, oil and gas, PSU bank, realty and auto have increased by 0.5-2.5 percent.
Aditya Gaggar, Director, Progressive Shares It says that despite the strong start, Nifty struggled to maintain the initial gains and remained in a limited range. Ultimately it closed at 23,311.80 with a marginal gain of 98.60 points. If we look at the performance of different sectors, PSU banking led the way with a growth of more than 2 percent. After this came the metal and energy sectors. While FMCG and IT stocks were seen getting beaten.
The broader market also witnessed limited trading, but mid and small cap stocks outperformed the frontline indices. Nifty is currently facing major resistance at the level of 23,360. A decisive move above this level will be necessary to maintain the momentum. If this does not happen, Nifty may again be seen falling towards the support at 23,150.
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Jatin Gedia, Technical Research Analyst at Mirae Asset Sharekhan Says Nifty opened with gains today and consolidated again during the day and closed in the green 99 points higher. After a sharp fall, Nifty counter trend has been in pullback mode. The upside range of the last three trading sessions has been broken, indicating that the uptrend is likely to continue towards 23500 – 25630.
There is a positive crossover in the Hourly Momentum indicator which is a buy signal. This indicates that the counter trend pullback may continue. On the downside, support is visible at 23160 – 23140.
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