2 days ago
The bulls staged a powerful comeback on Dalal Street, ensuring that New Year celebrations continued for the second consecutive day. The Nifty broke above its 200-Day Moving Average (DMA) during Thursday's trading session after several failed attempts in recent sessions. Historically, the 200 DMA has been a critical level for market reversals, often acting as a strong support from which significant upward moves have occurred.
In an impressive performance, the Nifty surged nearly 500 points today, breaking through key milestones at 23,800, 24,000, 24,100, and even 24,200. This marked the index's largest single-day gain on January 2 in the past six weeks. The last instance of the index witnessing such a move was back on November 22, 2024.
With this move, the Nifty surpassed both its 20-Day and 50-Day Moving Averages, further signaling bullish momentum. The index eventually closed 425 points higher at 24,168, marking a strong breakout after consolidating in a broader range. Notably, it conquered the pivotal 24,000 level and breached resistance at 24,200.
Today's rally stood out even against the backdrop of losses in Asian markets, driven by robust performances in financial, auto, and IT stocks. These sectors demonstrated remarkable strength as the market anticipates the upcoming quarterly earnings season.
Broader market although closed in green but underperformed large caps with Nifty Midcap 100 and Smallcap 100 indices, gaining 1.1% and 0.6%, respectively. Within the auto sector, monthly dispatches for the passenger vehicle and tractor segments exceeded expectations in December 2024, growing 20% year-on-year each.
Shares of Eicher Motors Ltd., manufacturer of the Royal Enfield Motorcycle as well as commercial vehicles, surged as much as 9% today. The stock ended at a record high. The stock had gained 16% in 2024 and has delivered positive annual returns every year since 2020. The uptick in the stock price was seen after Royal Enfield reported strong growth of 25% year-on-year, higher than Street expectations. The overall sales figures were higher than the CNBC-TV18 poll of 73,333 units, which projected a 16% growth from last year.
Going ahead, investors will closely track the pre-quarterly business updates to be released over the next few days for insights into the upcoming result season. Analysts expect the gradual uptick to continue in the market over the next few days, alongside a close watch on the third quarter earnings and the global cues as foreign markets reopen after year-end holidays.
Both foreign and domestic institutions were net buyers in the cash market on Thursday.
What do the Nifty50 charts indicate?
According to Nagaraj Shetti of HDFC Securities, the short-term trend of the Nifty remains strong on the upside and one may expect the index to move towards the next hurdle of 24,400 levels. Any dips from here could find support at around 23,900.
Om Mehra of SAMCO Securities said that a breakout above 24,280 could drive the index further towards 24,500. The support has shifted higher and is placed at 23,900, offering a strong base for any pullbacks.
LKP Securities' Rupak De said the Nifty appears to be a 'buy on dips' candidate following a strong closing. "Support is placed at 24,000, while on the higher end, it may move towards 24,500."
What do the Nifty Bank charts indicate?
The Nifty Bank closed the session at 51,606, gaining 1.07%, signaling a reversal from lower levels after a prolonged consolidation phase within a Darvas box pattern. The index broke and sustained past its previous resistance at 51,500.
"Reclaiming the 9 DMA is a positive development, with the 20 and 50 DMAs positioned near the 51,800 zone. A decisive move above this level could trigger a sharp recovery, potentially accelerating the uptrend. The momentum indicators add further optimism. The daily MACD is on the verge of a positive crossover, while private banks are exhibiting sustained strength from their lower levels, bolstering the index," Mehra said.
The analyst further said that support has shifted higher and is now firmly placed at around 51,100, providing a strong base to cushion any pullbacks. The Nifty Bank is strengthening momentum and paving the way for an upside toward 52,100–52,500.
What Are The F&O Cues Indicating?
Fresh long positions were seen in these stocks on Thursday, meaning an increase in both price and Open Interest:
| Stock | Price Change | OI Change |
| Eicher Motors | 8.83% | 24.32% |
| Maruti Suzuki | 5.50% | 18.27% |
| Oil India | 6.38% | 15.84% |
| Bajaj Finserv | 7.58% | 13.84% |
| PB Fintech | 3.65% | 13.37% |
Fresh short positions were seen in these stocks on Thursday, meaning a decline in price but an increase in Open Interest:
| Stock | Price Change | OI Change |
| Union Bank | -1.13% | 25.01% |
| SJVN | -1.63% | 24.22% |
| Petronet LNG | -5.75% | 23.11% |
| Angel One | -1.64% | 9.09% |
| Adani Total Gas | -1.84% | 6.61% |
Here are the stocks to watch ahead of Friday's trading session:
- Biocon arm Biocon Pharma Gets Approval For Tacrolimus capsule From Medical Products Administration (NMPA), China. Tacrolimus is an immunosuppressant used in the treatment of organ transplant patients, which reduces the body’s ability to reject a transplanted organ.
- NHPC Ltd. gets payment of ₹250 crore under mega insurance policy for loss caused by flash flood at Teesta-V Power Station (510 MW) on October 4, 2023.
- Pricol board approves divestment of wiping business division of the company to Auto Ignition on a slump sale basis.
- Arun Krishnamurthi has resigned as the MD and CEO of Axiscades Technologies, with effect from January 2, 2025.
- Avenue Supermarts Q3 Business Update | Q3FY25 standalone revenue stood at ₹15,565.23 crore as against ₹13,247.33 crore year-on-year. The total number of stores as of December 31, 2024, stood at 387.
- Varun Beverages has invested ₹413 crore in arm The Beverage Company Proprietary, South Africa.
