Record rally continues with Nifty closing above 14,550, PSU banks outshine

Market continued its upward journey closing higher for the third straight session on January 13 led by auto and financial stocks. The BSE Sensex was up 247.79 points or 0.50% at 49,517.11, and the Nifty was up 78.70 points or 0.54% at 14,563.50.

“The pace of the market rally continued despite RBI’s caution over elevated NPA levels in 2021, supported by PSU Banks and Auto stocks. Majority of the sectors traded in the green in anticipation of good quarterly result while pharma and FMCG experienced some selling. US bond yield has changed its trajectory to a rising trend, which could impact EMs in the future. But FII inflows are strong and the dollar continues to be weak due to oversupply of USD led by the high amount of fiscal stimulus,” said Vinod Nair, Head of Research at Geojit Financial Services.

Nifty PSU Bank Index added 6 percent with Nifty Bank, auto, infra and energy indices rose 1 percent each. However, Nifty pharma index shed 1 percent and FMCG index was down 0.5 percent.

Broader markets underperformed the main indices, with BSE Midcap and Smallcap indices added 0.4 percent and 0.2 percent, respectively.

Tata Motors, GAIL, Eicher Motors, SBI and Coal India were among major gainers on the Nifty, while losers were Asian Paints, Titan Company, Nestle, HUL and Sun Pharma.

Stocks & sectors

The BSE Realty index jumped 2.8 percent, while auto and oil & gas index added 1 percent each. BSE capital good, FMCG and healthcare indices shed 0.4-0.6 percent.

A volume spike was seen in PNB, Tata Chemicals, and Bank of Baroda.

Long buildup was seen in Bank of Baroda, Gail and Canara Bank, while short buildup was seen in Bandhan Bank, Nestle and Asian Paints.

More than 350 stocks, including ACC, Wipro and TVS Motor hit a fresh 52-week high on the BSE.

Technical View

The Nifty formed a healthy Bullish candle on daily scale and continued the formation of higher highs from the last fourteen trading sessions.

Index witnessed some consolidation in last hour of the session but finally settled with gains of around 90 points.

“Now it has to continue to hold above 14,400 zones to witness a fresh move towards 14,750 then 15,000 zones while on the downside major support exists at 14,300 and 14,200 levels,” said Chandan Taparia of Motilal Oswal Financial Services.