How are the Markets Looking ?
The markets started the day on a bearish note, with a sharp downturn witnessed in the first 15-20 minutes of trading. This decline closed the gap that was created on 26th December. However, the markets were quick to rebound, and in the subsequent hours, a remarkable turnaround occurred, leading to a 200-point gain in the last couple of hours. This substantial gain resulted in a very positive closing for the day.
It is safe to say that this closing has effectively put an end to the short-term negative trend in the market. Moreover, the crucial support level that was highlighted earlier has been firmly maintained. Going forward, the key support level to watch is 21,440, unless there is any adverse news that significantly impacts the market.
Nifty Heatmap
The Nifty heat map showcased a mixed performance of different stocks. Notably, Reliance, the market’s big player, demonstrated strong leadership by recording a 2.7% increase. Additionally, IT stocks like Vipro, HCL Tech, TCS, and ICICI Bank performed well with a 1.3% rise. The Adani stocks, along with pharmaceutical company Cipla, witnessed an upswing with a 3% increase. Railway stocks also experienced positive movement. However, it is important to note that the public sector enterprise stocks did not fare well, facing a 1% decline.
Sectoral Overview
After a prolonged period of stagnation, the metal sector finally showed signs of life with a 1% increase. This development is encouraging as it signifies a potential comeback for the sector.
The IT sector observed a modest rise of 0.5%. The positive outcome of the upcoming results of Infosys and TCS, which were scheduled to be released on the following day, contributed to this optimism.
Pharmaceuticals, energy, and infrastructure sectors also experienced marginal gains on 10th January. However, FMCG, PSU banks, and real estate sectors faced a slight reversal, as they gave up some of their recent gains.
Mid & Small Cap Performance
In terms of market capitalization, midcaps and small caps displayed an impressive resurgence. Midcaps, in particular, showcased a pin bar-like candle on the daily chart, which is highly encouraging. This pattern suggests that there is no downtrend present; instead, it indicates a correction due to profit-taking. Similarly, small caps demonstrated strong resilience by holding on to their positions, closing near the all-time high mark. This resilience further reinforces the positive sentiment surrounding the market.
Nifty Bank Overview
While the overall market showed signs of strength, the Nifty Bank continued to struggle. It failed to recover from the fall that occurred during the last hour of trading on the previous day, which indicates weakness and remains a significant concern for investors.
Highlights – Rail Stocks
Rail stocks, such as Ircon International and Rail Vikas Nigam, witnessed impressive surges, with gains of 15% and 9%, respectively. These stocks have been consistently trending upward, presenting investors with attractive buying opportunities during dips. This trend is expected to continue in the future.
Highlights – Nifty IT
the Nifty IT sector is currently experiencing anticipation regarding an upcoming move. In the coming days, we will have a clearer picture of the market’s direction.
Highlights – Nifty Metal
The metal sector, amidst its upward surge, is providing an opportunity for profit-taking and further growth, with higher lows and higher highs being formed
Highlights – Nifty PSE
PSE Stocks took a small beating
Despite some corrections and fluctuations in specific sectors, the overall market sentiment remains bullish. The constant rotation of sectors, such as real estate, metals, and rail, signifies a relay race that typically takes place during a bull market. This phenomenon suggests that the market is resilient and determined to maintain its upward trajectory.
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