In the first trading session of the new year, despite the restrictions related to COVID, there was good strength in the domestic stock market. The rally in crude oil prices and lack of good cues from the global market also failed to stop the index’s gains.
The analyst said that even though some states and union territories have imposed restrictions, it is not going to affect the economic activity on a large scale. Barring a few sectors, the impact on India Inc’s earnings will be minimal, he added.
Nifty up 271 points
The Sensex opened sharply and continued to strengthen with the day. Finally, the Sensex closed at 59,183.22 with a strength of 929.40 points. On the other hand, Nifty closed at 17,625.70 with a gain of 271.65 points. On the other hand, financial markets in Australia, China, Japan, New Zealand and Thailand remained closed on Monday due to public holidays.
This Defense stock is up 69% in 10 trading sessions, what do you have?
17,700 level is important
Sameet Chavan of Angel One said, “One can wait for a durable closing above 17,400, which is the higher end of the ‘Downward Sloping Channel’ on the Daily Time Frame chart. After this, an eye will have to be kept around 17,550-17,700. On the other hand, 17,000-16,800 can be seen as important support levels.”
HDFC Bank, ICICI Strong
Bajaj Finserv closed at 16,963, up 3.49 per cent. On the other hand, Axis Bank rose 2.41 percent to 694.90. HDFC Bank, ICICI Bank recorded gains of over 2 per cent.
Maruti Suzuki’s stock registered a strength of 1.25 percent due to good sales of vehicles. On the other hand, Wipro, Asian Paints and Tech Mahindra gained more than 1 per cent. NTPC, TCS, Power Grid, HCL Tech and Infosys also gained around 1 per cent.
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Be ready for modest returns in 2022
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, “This stellar performance may continue into 2022 as well. Good credit demand, decline in NPAs and increase in margins are expected to outperform the private sector, which has been underperforming so far. Investors should be prepared for modest returns in 2022 with the expectation of good performance from segments related to financials, IT, telecom and construction.”
Due to the imposition of restrictions on cinema houses, the shares of PVR opened in the red mark, although on the basis of good buying in the first 2 hours, it came in the green mark, which closed at 1,340.80 with a strength of 3.27 percent. At the same time, the shares of Inox Ledger also closed with a slight increase. Shares of Tata Motors closed at 497.45, up 3.13 per cent.
Crude oil strength neutralized
Meanwhile, Brent crude gained 67 cents, or 0.86 per cent, to $78.45 a barrel. On the other hand, US West Texas Immediate crude futures are up 77 cents, or 1.02 per cent, at $75.98 a barrel.
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