The domestic indices BSE Sensex and NSE Nifty closed in the green amid a volatile trading session. Sensex added 361 points to close at 60,927 while Nifty settled at 18,132, gaining 117.7 points or 0.6%. Bank Nifty added 0.54% to end at 42,859. Every BSE Sensex-30 constituent began trading in green as Tata Motors and Tata Steel gained the most intraday. All Nifty’s sectoral indices, barring Nifty FMCG, ended in the positive territory with Nifty Metal rising over 3.7% in trade today. The broader markets also closed higher, Nifty Midcap 100 and Nifty Smallcap 100 gained 0.99% and 1.19% respectively.
Markets Decoded: More volatility expected close to month’s F&O expiry
“With strong support from global peers, the domestic market is attempting to recoup its previous week’s losses. Metal stocks shone amid hopes of a demand revival in China on reports of loosening COVID restrictions. This, along with fears over supply disruptions from winter storms in the US, resulted in oil prices rising.” – Vinod Nair, Head of Research at Geojit Financial
Low trade volumes in markets today
“Volumes on the NSE were on the lower side as a result of low participation due to year end holidays. Broad market indices rose more than the Nifty and the advance decline ratio came in at 3.59:1 on the NSE. Equities globally climbed Tuesday amid positive sentiment from China’s rollback of Covid isolation measures (raising hopes of a recovery in the world’s second-largest economy) and the cooling of a key inflation gauge in the US. Nifty did well to build on the gains of the previous session. As we approach the F&O expiry for the month and also the year end, we could see some heightened volatility in the markets over the next two days.” – Deepak Jasani, Head of Retail Research, HDFC Securities.
Nifty Technical Outlook: 18,000 sacrosanct support level
“Technically, after a promising reversal formation the market held the uptrend formation throughout the day. The higher bottom intraday formation is indicating the continuation of a pullback rally in the near future. For the trend following traders, 18000 would act as a sacrosanct support level, above which the index could move up to a 50-day SMA (Simple Moving Average) or 18220. In case of any further upside, the index could move up to 18300.” – Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities