Sensex, Nifty at record closing high; experts say avoid trading on index

The benchmark indices started the week on a flying note with both Sensex and Nifty touching record closing highs. The S&P BSE Sensex hit a record high of 41,899 while the Nifty50 hit a record high of 12,337 on January 13.

Let’s look at the final tally on D-Street on January 13 – the S&P BSE Sensex rose 259 points to 41,859 while the Nifty50 rallied 72 points to close at 12,329.

Sectorally, action was seen in the S&P BSE Realty index, followed by the S&P BSE IT index, telecom and FMCG index.

The broader market outperformed as the S&P BSE Smallcap index gained 0.95 percent while the S&P BSE Midcap index closed with gains of 0.87 percent.

As benchmark indices hit fresh record highs, the market capitalisation (m-cap) of BSE-listed companies rose over Rs 1 lakh crore to Rs 158.74 lakh cr on Monday compared to Rs 157.67 lakh cr January 10.

Experts are of the view that investors should stay light as the probability of consolidation is much higher at current levels, but the overall trend still remains on the upside.

If the momentum remains intact on Tuesday, and Nifty50 holds on to 12,337 levels then the next target is placed at 12,400 levels, Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, told .

He further added that the rally on the upside may be short-lived. “At this point in time, it looks prudent on the part of traders to avoid trading in the index but they are advised to look for stock-specific opportunities,” explains Mazhar.

More than 80 stocks hit a fresh 52-week high that includes names like Shree Cements, SRF, NIIT Technologies, Jubilant FoodWorks, Amber Enterprises, Balkrishna Industries, Timken India, and Birla Corp.

Top Nifty gainers – GAIL India, Coal India, IndusInd Bank, and Infosys

Top Nifty losers: TCS, Bharti Infratel, UPL, and Yes Bank

Stocks & Sectors:

Sectorally, the S&P BSE Realty index rose 2 percent, followed by IT index gained 1.8 percent, and the Telecom index rallied 1.7 percent.

Volume spike of 100-400% was seen in stocks like Tech Mahindra, Infosys, Dabur India, Wipro, and Coalgate Palmolive.

Long Buildup – Tata Global Beverages, Colgate Palmolive, Bharti Airtel, Apollo Tyres

Stocks in the news:

Infosys share price rose by about 5 percent on January 13 after the company reported better-than-expected numbers for the quarter ended December 2019 (Q3FY20). HSBC, Citi and Nomura raised their target price on Infosys post Q3 results.

YES Bank: YES Bank share price fell 6 percent on January 13 after the company’s independent director Uttam Prakash Agarwal submitted his resignation.

HCC: Shares of Hindustan Construction Company rallied almost 10 percent on January 13 after lenders initiated carving out Rs 2,100 crore of debt to third-party-controlled special purpose vehicle (SPV).

Tata Global Beverage: Tata Global Beverage ended 3 percent higher on January 13 after the National Company Law Tribunal (NCLT) approved the demerger of consumer products business of Tata Chemicals and vesting it with the company.

Edelweiss Financial: Edelweiss Financial Services share price rose 4 percent on January 13 after the company clarified it has no relationship with Capstone Forex Pvt Ltd and all allegations of FEMA violations are false.

Technical View:

Nifty50 formed a small bullish candle on daily charts

It is trading above most of its short term moving averages

The support is placed at 5-Days EMA placed at 12,224

If the index holds above 12337 which is the record high of Monday then chances of further rally towards 11400 levels is possible

Three levels to track: 12224, 12337, 12400Get access to India’s fastest growing financial subscriptions service Pro for as little as Rs 599 for first year. Use the code “GETPRO”. Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the website or mobile app.