The market showed enthusiasm on the first trading day of the new year. Sensex-Nifty touched a new 2 week high today. In today’s trading, for the second consecutive day, the reins of the market remained in the hands of the bulls. BSE Sensex was seen going above 69000 today.
At the end of trading, the Sensex closed at 59,183.22 with a gain of 929.40 points, or 1.60 per cent. On the other hand, Nifty closed at 17,625.70 with a gain of 271.65 points or 1.57 per cent. The broader market also played a big role in this rally. The BSE Midcap index closed at 25,244.82 with a gain of 1.10 per cent. On the other hand, the smallcap index managed to gain 1.2 per cent.
Let’s take a look at the reasons that did the job of a booster for the market
GST Collection
For the sixth consecutive month in December, more than Rs 1 lakh crore GST has been collected. The gross GST collection in December 2021 has been Rs 1,29,780 crore. Which has been slightly less than the November GST collection. Let us inform that in November, the gross GST collection stood at Rs 1.31 lakh crore, which was the second highest figure after the implementation of GST. The Finance Ministry has said in a statement about this that despite the decline of 17 percent in the e-way bills generated in November 2021 this month, the GST collection has been close to Rs 1.30 lakh crore. In November 2021, 61 crore e-way bills were generated while in October 2021, 7.4 crore e-way bills were generated. This statement further said that due to the improvement in tax compliance and better performance of the tax officers of the Center as well as the states, the GST collection in the month of December has been seen to be around Rs 1.30 lakh crore.
Strengthening of manufacturing activities
India’s manufacturing PMI has remained above 50 for the sixth consecutive month. This has also given support to the market. Continuing strength in the manufacturing PMI, there has been some restraint on the rising uncertainty amid rising cases of COVID-19.
auto stocks up
Auto stocks have seen a rise on January 3, i.e. in today’s business, on the basis of better sales figures than expected for the month of December. Today the auto index managed to close with a gain of 1.6 per cent. Meanwhile, Motilal Oswal, in his note on the auto sector, has said that the passenger vehicle segment has been supported due to the improvement in the supply of semi-conductors, but the two-wheeler segment is yet to recover due to rising costs. Keeping this in mind, we are giving more preference to 4 wheeler segment than 2 wheeler keeping in view the increasing demand and stable competitive environment. The momentum is expected to continue in the commercial vehicle cycle.
Major lockdown unlikely
State governments have imposed all restrictions to prevent the spread of new variants of corona, but there is no sign of a major lockdown like 2020. Although 33,750 new cases of corona have been found in India till 8 am on Monday, which is the biggest figure ever since September 2021, but the market seems happy due to the absence of any major lockdown.
All round shopping seen in the market
All-round shopping was seen in the market today. In this too, Bank Nifty was seen crossing the level of 36000 with a gain of 2.3 percent. Bank Nifty was the leader in the market today, which is a good sign for the future. The market is likely to rally ahead of the December quarter results. Let us tell you that on January 15, the season of third quarter results will start with the results of HDFC Bank. Today the Nifty Financial Services index also closed with a gain of 2.1 percent.
IT Index also participated strongly in today’s rally. Nifty IT index has managed to close with a gain of more than 1 per cent. It is worth noting that next week IT giants Infosys, TCS, Wipro and HCL Technologies will declare their results. Their results are expected to remain strong irrespective of the seasonal factor.
Metal and realty also saw gains of up to 1 per cent in today’s trade, but pharma stocks were under pressure. Let us inform that amidst increasing cases of corona last week, there was a growth of more than 5 percent in the pharma sector.
technical view
From a technical point of view, Nifty 50 seems to be on a bullish path. It has formed a bullish candle on the daily chart today. Today it closed above 17,600 with a gain of more than 1 percent, which is its important resistance level. If the Nifty stays above 17600, there are signs of further upside in Nifty. Last week Nifty was also seen forming a bullish candle formation on the weekly chart.
Nagraj Shetty of HDFC Securities Says that the short term trend of Nifty remains positive. In the near term, we may see further acceleration in this. If Nifty crosses the level of 17640 with strength, then we will see further rise in it.
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