Daily Market Commentary - Jan 11, 2022 - Bonanza Portfolio

Mr Vishal Wagh, Research Head - Bonanza Portfolio

Nifty manages to close well above 18,000 as bulls continued the momentum on dalal street. Among sectors, metal index fell over 2 percent, while buying was seen in the IT, power, oil & gas and realty stocks. The BSE midcap and small-cap indices ended flat. Both the indices closed at 18,055 and 60,617 respectively.

The index has once again given a strong close. A strong support lies at 17700 and as long as that holds, any dip is considered a buy opportunity. Going ahead 17,880 -17,940 will be good short term support for upcoming trading sessions and on the upside 18,200 will act as immediate resistance. The structure of the index seems to be in favour of bulls. Market breadth has remained at 1:1 with 25 stocks on advancing side, 24 stocks on declining side and 1 remaining unchanged.

Global market was on the edge as Fed meeting minutes hinted at rate hikes, elevated US inflation and the awaited release of US CPI inflation data. Domestic inflation levels are also likely to be significant due to unfavorable base effect though food prices have declined during December. Domestic benchmark indices showcased a flattish trend with positive bias as the market weighed the expectations of a strong quarter amid concerns over rising cases, supply issue and inflationary pressure.

HCL Technologies, Adani Ports, ONGC, HDFC and Tech Mahindra were among the top Nifty gainers. Losers were JSW Steel, Tata Steel, BPCL, Hindalco Industries and Coal India.

Source : Equity Bulls

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