Market slips from record high amid volatility; mid smallcap underperform

After hitting record highs, the market witnessed profit-booking and ended flat on January 13. The Sensex was down 24.79 points or 0.05% at 49,492.32, and the Nifty was up 1.40 points or 0.01% at 14,564.90.

“Following positive global cues and ease in inflation in December, the market opened with good gains. However, selling in heavyweights due to 1.9% contraction in factory output, as per IIP data, knocked down the gains in the main benchmark while the broader market followed the positive trend. Consistent foreign inflows along with better quarterly results are continuing to set the pace of the broad market,” said Vinod Nair, Head of Research at Geojit Financial Services.

Among sectors, barring pharma, all other indices ended in the green. Nifty PSU Bank index added over 3 percent.

Broader markets underperformed the main indices, with BSE Midcap and Smallcap ending lower by 0.6 percent and 0.4 percent, respectively.

M&M, SBI, Adani Ports, IOC and NTPC were among major gainers on the Nifty, while losers were Bajaj Finance, HDFC, Shree Cements, Bajaj Finserv and UPL.

Also Read – Gainers & Losers: 10 stocks that moved the most on January 13

Stocks & sectors

The BSE auto, bank, FMCG and Oil & gas indices rose 0.4-0.8 percent, while healthcare and realty indices shed 0.3-0.8 percent.

A volume spike was seen in Bharat Forge, BHEL and SAIL.

Long buildup was seen in HDFC AMC, Bharat Forge and Tata Chemicals, while short buildup was seen in Bandhan Bank, LIC Housing and Godrej Properties.

More than 300 stocks, including SRF, Maruti Suzuki, HUDCO and ICICI Bank hit a fresh 52-week high on the BSE.

Technical View

Nifty formed a Bearish belt hold candle on the daily scale with a long lower shadow which indicates that declines were being bought and the overall bullish undertone is intact.

It continued the formation of higher highs from the last fifteen trading sessions.

“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.