Bulls back in action as Sensex gains over 800 pts; realty outperforms

Bulls took charge of the Dalal Street on January 19 which helped the market recover most of the previous two sessions losses amid supporting global cues. At close, the Sensex was down 470.40 points or 0.96% at 48,564.27, and the Nifty was down 152.40 points or 1.06% at 14,281.30.

“The Nifty has closed around its resistance area of 14,550-14,600. If we manage to get past that level, we should be headed to 14,800-14,900. The index has made a strong base at the 14,200 level which acted as good support. Keeping a close below this level as a stop, traders can initiate long positions for higher targets,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.

All the sectoral indices ended in the green with the metal and PSU bank indices rising 2-3 percent. Also, auto, energy, infra and pharma indices added 1 percent each.

Broader markets performed in line with the main indices with BSE Midcap and Smallcap indices rising 1.5-2.3 percent.

Bajaj Finserv, Tata Motors, Bajaj Finance, HDFC and Hindalco Industries were among top gainers on the Nifty, while losers included Tech Mahindra, ITC, Wipro, M&M and Britannia Industries.

Stocks & sectors

The BSE realty index outperformed the other sectoral indices gaining 4 percent, while metal index rose 3 percent. Power and capital good indices jumped over 2 percent each.

A volume spike of more than 100 percent was seen in Mindtree, Siemens and UBL.

Long buildup was seen in Bandhan Bank, Havells India and DLF, while short buildup was seen in Tata Consumer and Escorts.

More than 200 stocks including Grasim Industries, IDFC Bank First and HDFC Bank hit a fresh 52-week high on the BSE.

Technical View

Nifty formed a Bullish candle on the daily scale and negated its formation of lower tops – lower bottoms from the last two sessions.

“Now, it has to continue to hold above 14450 zones to extend its move towards lifetime high of 14653 then 14750 zones. Meanwhile, on the downside, major support exists at 14350 and 14200 levels,” said Chandan Taparia of Motilal Oswal Financial Services.