Sensex rallies over 200 points as a volatile week comes to an end

Indian markets had a volatile week, with recovery setting in in the last two trading sessions. The Sensex rallied more than 200 points while the Nifty reclaimed 12,200 levels on January 24.

For the week, the Sensex closed 0.79 percent lower while the Nifty ended with losses of 0.84 percent. The Nifty Midcap rose 1.6 percent for the week.

Let’s look at the final tally on D-Street on January: the Sensex rose 226 points to close at 41,613, while the Nifty was up 67 points at 12,248.

Sectorally, action was seen in the capital goods index, followed by consumer durables, metals, and Bankex, while mild profit-taking was seen in the oil & gas index.

The broader market performed in line with benchmark indices. The BSE Midcap index rose 0.77 percent while the BSE Smallcap index ended with gains of 0.5 percent.

Top Nifty gainers: Britannia Industries, UltraTech Cement, YES Bank and Tech Mahindra

Top Nifty losers: IndusInd Bank, Cipla and Power Grid

Stocks & sectors

Sectorally, the BSE Capital Goods index rose 1.5%, followed by the BSE Consumer Durables that gained 1.3 percent, and the Bankex ended up higher by 0.92 percent.

A volume spike of 200-400% was seen in stocks such as Colgate Palmolive, Dabur India, Grasim Industries, UltraTech Cements and Adani Enterprises.

More than 100 stocks hit a fresh 52-week high. These include Voltas, Varun Beverages, Vaibhav Global, Tata Chemicals and Vadilal.

Long buildup: Grasim, Cummins India, Page Industries and Bata India

Short Buildup: Adani Enterprises, Biocon, NMDC, Canara Bank and Glenmark

Stocks in the news

ICICI Bank biggest contributor to Nifty Bank’s gain ahead of Q3 results on January 25.

UltraTech recovers 4% from lows after slipping on Q3 results.

Coffee Day Enterprises share jumped close to 5 percent after it decides to sell Way2Wealth Securities.

PNB Housing Finance share price tumbled more than 10 percent after its December quarter numbers.

The share price of Nippon Life India Asset Management gained nearly 4 percent, as brokerages remained positive citing steady performance in the October-December quarter.

Technical view

The Nifty formed a Bearish Engulfing pattern on weekly charts.

The index made a pullback attempt but failed to close in the positive. It still managed to close above 12,200 levels, which is a positive sign for the bulls ahead of the Budget.

Traders can look to book partial profits on rallies towards 12,300. 

Technically speaking, the weakness in the near term shall resume on a close below 12,100. But, a pre-budget rally could take the indices higher, say experts.

The Nifty’s underlying trend is positive, one may expect pre-budget upside rally in the next week. There is a possibility of a new all-time high formation above 12,430, they say.

Three levels: 12,149, 12,272, 12,400Get 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.