Sensex, Nifty end near record highs on Thursday; here’s what experts make of today’s trade

Indian stock market benchmarks BSE Sensex and Nifty 50 ended near record highs on Thursday ahead of Christmas holiday. BSE Sensex surges 529 points to end at 46,973, while the broader Nifty 50 index jumped 148 points to settle at 13,749. During intraday, Sensex touched a day’s high of 47,053.40 while NSE’s Nifty reached 13,771.75 levels. Mrs Bectors Food Specialities shares surged 107 per cent over the issue price of Rs 288, to close at Rs 595.55 apiece. the stock made its debut at rs 501, rising 74 per cent. The broader markets underperformed benchmark indices. S&P BSE Midcap index ended flat to positive at 17,676.70, while the S&P BSE SmallCap index managed to gain 0.60 per cent or Rs 103 at 17,675.53.

Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities

“This has been a short but eventful week with wide gyration in stock prices. After the sharp correction seen on Monday prices have recovered in the last three days. Monthly expiry has also contributed to the higher volatility. Nifty’s closing near the previous week high indicates strong rollovers on the back of healthy FII flows seen this month. IT stocks have again come into limelight because of the large mega deals announced by Infosys and Wipro this week. Some of the old economy stocks from oil & gas, automobile and metals & mining have come under selling pressure this week. This week has seen moderation in flows from both FIIs and DIIs. We can expect muted FII activity in the next week also due to year end phenomenon but expect activity to pick up sharply from the first week of January. Most probably Nifty should take support at 13,000 levels with likely break out above the 14,000 level sometime in January.”

S Ranganathan, Head of Research at LKP Securities

“Ahead of a long weekend and a tranche of expected rural stimulus, bulls were in complete control buoyed by a stellar listing of Mrs Bectors Food. Financials and pharmaceuticals led the rally while investors bought into insurers and consumer durable names across the broader market.”

Ashis Biswas, Head of Technical Research, CapitalVia Global Research Limited- Investment Advisor

“The market witnessed the continuation of the strong pullback rally after a big correction that occurred on Monday. While sustaining above 13750 is the key factor from a short-term perspective, A decisive breakout above the zone of 13760-13780 could open the gate for a movement till 13990. The momentum indicators like RSI, MACD indicating a positive outlook to continue and market breadth to improve further after the decisive level breakout of the resistance zone.”

Rohit Singre, Senior Technical Analyst at LKP Securities

“Index maintain the bullish momentum for the third consecutive session and closed a day at 13749 with gains of more than one per cent forming inside bar kind of candle pattern on the daily chart. Now index has reached to its upper band of resistance which was at 13775 going forward if index managed to sustain above-said level then we may see the extension in rally otherwise we may see some profit booking in the index, support for nifty is coming near 13680-13600 zone.”