The Indian market has had a perfect start to 2021 as it managed to close in the green for the second straight session in the new calendar. Both Sensex and Nifty ended the session at record closing highs. At close, the Sensex was up 307.82 points or 0.64% at 48,176.80, and the Nifty was up 114.40 points or 0.82% at 14,132.90.
“Every dip is being considered by the traders as an opportunity to buy. Today morning’s volatility was bought, fueled by the early rollout of the vaccine in India and the positive opening of the European market. The leader was IT stocks which were boosted by the hope of a strong quarterly result, which will start soon,” said Vinod Nair, Head of Research at Geojit Financial Services.
“The global market has kicked off the year on a positive note as investors across the globe are optimistic about economic recovery on the report over vaccine approval & fiscal support,” he added.
The Nifty Metal index surged 5 percent, while IT index added 2.6 percent. The Auto, Energy, Infra and Pharma indices gained 1 percent each.
Broader markets outperformed the main indices. The BSE midcap index rose 1.4 percent and the smallcap index added 1.3 percent.
Tata Steel, Hindalco, Eicher Motors, ONGC and TCS were among major gainers on the Nifty, while losers included Hero MotoCorp, Kotak Mahindra Bank, Bajaj Finance, Adani Ports and Asian Paints.
Stocks & sectors
The BSE metal index added 5.3 percent, while Oil & Gas and IT index added 2 percent each. BSE capital goods, healthcare and auto indices rose 1 percent each.
A volume spike was seen in Amara Raja Batteries, Muthoot Finance and Zee Entertainment Enterprises.
Long buildup was seen in Aarti Industries, PNB, Amara Raja Batteries, while short buildup was seen in Bandhan Bank, NTPC and Zee Entertainment Enterprises.
Over 400 stocks, including Vedanta, Amara Raja Batteries and Divis Laboratories hit a fresh 52-week high on the BSE.
The Nifty made a bullish candle on the daily scale with a long lower shadow which indicates that bulls are in a dominant position and every small decline is being bought in.
It breached its previous day’s low but continues its winning streak of forming higher highs since the last eight trading sessions.
“Now it has to continue to hold above 13950-14000 zones to witness a fresh rally towards 14200 then 14500 zones while on the downside major support exists at 13850 and 13777 levels,” said Chandan Taparia of Motilal Oswal Financial Services.