Nifty may touch 11k in Jan

Benchmark indices Sensex and Nifty-50 continued gains for the second day on positive global markets with the US benchmark indices gaining around 5 per cent. The futures and options expiry related volatility abated on Thursday with Sensex and Nifty remaining in the green throughout the trading session. Meanwhile, crude oil prices have turned volatile as Brent crude futures touched a high of $54.47 per barrel on Wednesday after briefly falling below $50 per barrel. On Thursday Brent crude fell by 2 per cent and traded at $53.38 per barrel around 6:30 pm.  

The Sensex closed at 35,807.28 up by 157.34 point or 0.44 per cent while the Nifty-50 closed at 10,779.80 up by 49.95 point or 0.47 per cent. The broader market indices underperformed the benchmarks with the Mid-cap index up by 0.32 per cent and small cap fell by 0.31 per cent.

Among the sectoral indices IT index gained 1.32 per cent tracking weaker rupee, other gainers were Oil & Gas index up by 0.83. The top sectoral losers included Bankex and Auto index down by 0.37 per cent and 0.28 per cent respectively.

Technical view

Rahul Mishra, AVP (derivatives), Emkay Global Financial Services, said, “In December global cues provided good resistance and we saw selling pressure from 10,970 levels towards the closing of the December expiry. As per the option concentration Nifty’s range for first month of 2019 is 10,500-11,000.”

Market view

Satish Kumar, senior research analyst - Fundamental Research, Choice Broking said, “Bolstered by 5 per cent surge in US benchmarks Dow Jones, S&P 500 and Nasdaq indices, domestic benchmarks made gap up opening with around 1 per cent gain. However, market paired some gains in the afternoon session as the sharp rally in crude oil price also weighed on the sentiments. While most of index were trading in red, market was supported by over 1 per cent gain in IT, FMCG and media indices. The market maintained positive trade throughout the session and ended around 0.4 per cent higher. Global factors continue to remain crucial for determining the market direction in coming sessions.”

—Ravi Ranjan Prasad