Markets Buoyed, Nifty and Sensex settle above 200-DMA

Indian markets broke out of consolidation and closed a percent higher, after a prolonged breather of three trading sessions, taking positive cues from the Wall Street and Asian bourses. 

Nifty closed above 8250 mark at 8273 while Sensex closed at 26878 levels gaining 245 points. On the broader front, Midcap outperformed with 1.35% gains while Smallcap remained more or less in line with 0.96% gains. 

Market breadth remained highly positive with 1950 advances and 885 declines.

Barring the IT sector that tumbled 0.9%, all other sectors ended in green with Metal remaining at the forefront with 3% gains. 

JSW Steel remained the top gainer in the metal index with 7.8% gains. 

Auto sector followed the optimism and gained 2% where Tata Motors DVR and Tata Motors gained the most after Tata Motors posted JLR sales data early in the morning session. 

Banks too recovered from prior day losses. All of the bank index constituents were up in green in today’s session. 

Tata Motors DVR and Adani Ports were the top gainers while IT giants, Tech Mahindra, TCS and HCL Technologies remained top losers for the Nifty.

We saw both Nifty and Sensex crossing its 200 days EMA level on closing basis for the time since mid-November 2016. 

We had talked of a resistance of 8275 followed by 8300 for the Nifty which is not broken yet. Hence, we maintain our resistance levels. On the downside 8250-8220 will act as immediate supports.

Chambal Fertilisers: The stocks sizzled upon reports of Ministry of fertilisers seeking for 80000 crore as subsidy. 

Tata Motors: Tata Motors gained with record sales for JLR being reported from US markets

Yes Bank: Yes bank was the top gainer in the banking space even as Jugnoo enables UPI payments powered by YES Bank on its app. 

Bank of Baroda: The stock, in line with the broader trend gained on bourses on intraday basis even as the bank reduced its Marginal cost of lending rate today.

Sensex and Nifty stable, Metal and Banks up

Tata Motors is the biggest contributor to the Sensex gains; contributing 30 points to the Sensex gains. ICICI Bank with 27 points is the second largest contributor followed by Reliance Industries, Infosys and ONGC contributing 17 pts, 15.41 pts and 14.45 pts respectively.

BSE bankex is gaining on Thursday with the index gaining by almost 1.19% on intraday basis. The index trading at 20692 is up by almost 246 points. ICICI Bank is the biggest gainer in the index followed by Yes Bank. With contribution of almost 94 points to the Index, ICICI Bank is the biggest contributor to the index. Yes bank has contributed almost 35 points to the index.

BSE metal index is shining on bourses on Thursday by gaining more than 2.56% by far outperforming all the sectoral indices. JSW Steel is the biggest gainer in the sector followed by Vedanta and Tata Steel. In fact, all the three stocks put together have contributed to almost 70% of the gains for the BSE metal index.

At 1:06 PM, the S&P BSE Sensex is trading at 26851 up 218 points, while NSE Nifty is trading at 8266 up 76 points. A total of 34 stocks registered a fresh 52-week high in trade today, while 6 stocks touched a new 52-week low on the NSE.

Out of 1894 stocks traded on the NSE, 363 declined, 1219 advanced and 312 remained unchanged today.

The BSE Mid-cap Index is trading up 1.08% at 12326, whereas BSE Small-cap Index is trading down 0.92% at 12486.

Some buying activity is observed in Metal, Bank, Auto, Capital Goods, Oil & Gas, Pharma sectors, while Information Technology, Telecommunications, Realty, Telecom are showing weakness on BSE.

Adani Ports, Tata Steel, Yes Bank, Aurobindo Pharma, Tata Motor DVR, Tata Motors, Bosch, ONGC, ICICI Bank, Ultratech Cement are among the gainers, whereas Infratel, TCS, Tech Mahindra, M&M, ITC are losing sheen on NSE.

The INDIA VIX is down 3.98% at 15.25.

Nifty trading over 8200, Auto and Bank stocks up

Nifty and Sensex are stable and trading in green post the first hour of trading. Auto and Bank stocks are providing the right support to benchmark indices. In addition, Nifty Auto and Metal are indicating strong positive uptrend.  Nifty Auto gained 1.26% while Metal gained 1.47%.

Banks are gaining on an intraday basis on January 5, with several of the banks like Laxmi Vilas Bank, Corporation Bank, Indian Bank, DCB Bank, Vijaya Bank and Dena Bank all trading firmly up, even as the broader markets trade in green. Bank of Baroda is the stock of the day in the Bankex index. The stock of the bank is trading up by 2%.

At 10:46 AM, the S&P BSE Sensex is trading at 26807 up 174 points, while NSE Nifty is trading at 8248 up 58 points. A total of 31 stocks registered a fresh 52-week high in trade today, while 5 stocks touched a new 52-week low on the NSE.

Out of 1893 stocks traded on the NSE, 320 declined, 1213 advanced and 360 remained unchanged today.

The BSE Mid-cap Index is trading up 0.84% at 12194, whereas BSE Small-cap Index is trading down 0.85% at 12372.

Some buying activity is observed in Auto, bank, Metal, Oil & Gas, Pharma sectors, while Telecom, Realty are showing weakness on BSE.

Tata Motors, Yes Bank, Tata Motor DVR, Adani Ports, Hero MotoCorp, Wipro, Bank of Baroda, ONGC, Bosch, Bharti Airtel are among the gainers, whereas Infratel, M&M, Ambuja Cement, HDFCare losing sheen on NSE.

The INDIA VIX is down 3.13% at 15.39.

Sensex, Nifty to open on a positive note

The outlook is a positive start. Asian indices traded in the green even as the Japanese Nikkei traded flat after yesterday's 500 point rally. Renewed bout of global growth optimism saw equities regain momentum as investors bought stocks. Emerging markets also are seeing value buying emerge as investors allocate funds to EM ETF"s.
 
The street expects some bustle in the days ahead with earnings, Trump swearing-in, Union budget and of course the assembly polls in 5 states which commence from Feb 4. On Wednesday again, the market settled flat after a choppy trade, mapping the GST council meet’s indecisiveness which will make an April 1 rollout a difficult task. Domestic funds have managed to absorb most of the selling by foreign investors in the last couple of days. Global cues are just about positive.

The Dollar has shed some weight. Minutes from the Fed’s December meeting mention "substantial uncertainty" about fiscal policy ahead following Trump victory; a "more expansionary fiscal policy" raises possibilities of "somewhat tighter monetary policy than currently anticipated."

Moody’s said strong GDP growth, capacity additions and stabilising commodity prices will support EBITDA growth of 6-12% over the next 12-18 months for India. Foreign direct investment in the country rose 27% yoy during April-Oct FY17 to $ 27.82 bn.

Nifty consolidated around 8200 with banks stocks being under pressure after the recent round of rate cuts. Materials, infra & IT stocks lead from the front with huge buying seen in mid cap leveraged stocks which should be prime beneficiary of lower rates. Nifty may consolidate around 8200 with an attempt to cross the 200 DMA placed @ 8270 with the real action being in the broader market.

Among other stocks in focus are:

HDFC Bank: HDFC Bank cut its benchmark lending rate by up to 0.90% joining over a dozen banks and housing finance companies that have slashed rates in last few days.

Chambal Fertilisers and Chemicals: BSE on Wednesday asked Chambal Fertilisers and Chemicals (CFCL) to explain reasons for sharp increase in trade volumes of its shares. The share price of the company closed 10.49 per cent up at Rs 78.45.

Prima Plastics: The company informed bourses that Prima Dee-Lite Plastics sarl at (Camerron, West Africa) has successfully completed expansion project undertaken to enhance its capacity of production. The existing capacity of the company of 4,500 tonne per annum is increased to 8,500 tonne per annum. The commercial production at the plant has commenced on January 3.

M&M: Mahindra & Mahindra appointed J.P. Morgan Chase Bank, N.A. as its overseas depositary for managing its Global Depositary Receipt programme with effect from January 03.

SAT Industries: The company to hold a board meeting on January 16 to consider allotment of equity shares and to make further investments in its subsidiary company.

Dena Bank: The lender to hold board meeting on January 7 to consider raising of funds.

Gati: Promoter TCI Finance's pledged share were invoked by IDFC Bank. TCI Finance now holds 6.27 percent stake in the company.

BAFNA Pharmaceuticals: The company to hold board meeting on January 7 to consider a proposal to issue 8 million share warrants.

Tata Elxsi: The company partners with Irdeto to provide automakers with secure in-car display systems for automobiles.

LT Foods: The owner of 'Daawat' brand of rice has fixed February 8 as record date for the purpose of sub division of equity shares.

SAIL: The country's largest steel maker SAIL said it has produced 10.18 million tonnes of saleable steel in April to December period of the current fiscal, registering a 15 per cent growth over the year-ago period.

DHFL: The company reduced its home loan lending rates by 0.5 per cent in line with competitors.

Petron Engineering: The company on Wednesday informed bourses that it has received Letter of Intent from Shree Cement, for civil work of plant building & silos and misc. work at their Orissa Grinding Project for contract value of Rs 33 crore.

Sun Pharma: Pharma player Sun Pharma announced successful Phase 3 confirmatory clinical trial results for Seciera for the treatment of dry eye disease.

Tech Mahindra: Country's fifth largest software exporter Tech Mahindra on Wednesday launched a majority-owned joint venture in Saudi Arabia in partnership with local conglomerate Al Fozan Group.