Firm global cues lift Sensex about 600 points; Nifty may race to 22,000

Domestic markets started January 9 trade on a positive note as sentiments improved overseas. The benchmark indices – S&P BSE Sensex and NSE Nifty 50 climbed 0.4 percent each to 71,654 and 21,606 levels within the first hour of trade amid lower volatility. While December quarter (Q3FY24) results and inflation data will further shape market momentum, analysts eye Nifty to reach 22,000-mark in the next few sessions.

“Once Nifty crosses 21,800 levels, it can move higher towards 22,000 levels,” said Deven Mehata, Derivative Analyst at Choice Broking.

Sacchitanand Uttekar, DVP–Technical (Equity), Tradebulls Securities also told Moneycontrol that the broader structure of the market is positive and until Nifty breaches below 21,330 levels, one cannot call it correction. “Since markets have been rangebound since a couple of days, there is no decisive mood where the trend is going. Hence, we recommend investors to buy on every decline for now,” he added.

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On the other hand, Trivesh D, COO at Tradejini said that these short-term corrections would make overall markets healthy and help it achieve record highs once again. “With the current bear phase resulting in a market correction, we can expect this year to see some high records, as historically market corrections before a major event (election) usually yield a fast-paced market rally subsequently,” he opined.

With strong global set-up, easing yields, and lower dollar, the broader end of markets also fared well on January 9 morning deals. Nifty Midcap 100 and Nifty Smallcap 100 indices climbed up to 0.7 percent, while fear gauge India VIX slipped 3 percent.

Sectorally, Nifty IT was the star performer in opening deals as it rose 1 percent led by gains in Wipro, TCS, HCL Tech, and Infosys. This comes ahead of Q3 results that will start from January 11. However, market consensus bet that IT names will report a subdued quarter due to lower discretionary spends in a higher interest rate environment.

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Apart from IT, Nifty Realty index climbed up to 0.9 percent led by gains in Brigade Enterprises after it signed memorandum of understading (MoU)  worth Rs 3,400 crore with the Tamil Nadu government. Overall, analysts at Jefferies in its recent note shared that they expect low inventories and mid-cycle affordability to support residential sales growth in 2024.

The worst sector performer emerged to be Nifty Media index as it slipped over 3 percent weighed by Zee Entertainment shares after reports suggested that Sony Group is mulling to cancel merger deals with the company.

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