The Indian markets gained for fifth straight session on Thursday, with Sensex rising marginally by 85 points to 61,235 and Nifty50 surpassing 18,250 levels, as metals lifted the mood despite financials dragging the indices down. 

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Sectorally, metal stocks gained the most amongst indices with Nifty Metal rising 3 per cent, in this regard, Tata steel, JSW Steel closed as top gainers followed by Sun Pharma, Coal India, L&T.  Nifty Bank settled in the red, going down by over 250 points to end above 38450-mark. Private lenders such as HDFC Bank, IndusInd Bank and Kotak Bank were among the biggest laggards. 

On the other hand, Wipro cracked over 6 per cent after lower-than-expected Q3 numbers on Wednesday.  

Broader markets outperformed the benchmarks as Nifty mid-cap surged over 200 points to close almost 32000-mark.

Ahead of results on Friday, IT major HCL Tech fell over 1 per cent, while Mindtree, which declared its Q3FY22 results today rose almost 3 per cent. It reported robust December quarter earnings after the market closing.  

Polycab, JSPL, Tata Elxsi, Bandhan, Atul, Trent are the top midcap gainer, while Motherson Sumi, Oberoi Realtya, KPIT Tech, Ramco Cements, Havells were the top midcap losers. Realty sector witnessed profit booking after a surge on Wednesday, as Nifty Realty down 1 per cent. 

Vinod Nair, Head of Research at Geojit Financial Services said, “Globally, western markets traded lower due to 4-decade high inflation as the US consumer price index rose by 7 per cent year-on-year in December. Owing to an unfavourable base effect, India’s retail inflation also jumped to 5.59 per cent in December higher than RBI’s forecast of 5.1 per cent for Q3FY22.” 

“Lot of developments happened in the telecom sector as the communication ministry announced that Vodafone idea and TATA Teleservices will not become government undertakings after the conversion of outstanding dues into equity,” Mohit Nigam, Head - PMS, Hem Securities. 

On the technical front, the key resistance level for Nifty50 is 18400 and on the downside 18000 can act as strong support. Key resistance and support levels for Bank Nifty are 38800 and 38000 respectively, Nigam added in a post market comment on Thursday.  

Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities said, “Nifty remains in an uptrend and is expected to test 19000-19500 levels going ahead. Any correction in the short term can be used to initiate fresh long positions. We remain positive on Metals and FMCG at current levels; Realty, IT, and Auto trade with positive bias but can be bought only on deeper corrections.” 

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas, “The Nifty opened gap up on January 13 post which it traded in a sideways manner & ultimately formed a Dragonfly Doji on the daily chart. This gives a warning that the rally can run out of the steam in the short term.”  

“The hourly momentum indicator continues to show negative divergence near the overbought zone that also shows that the index is losing momentum on the upside. The hourly chart shows that the index is trading near lower end of a rising channel, which is near 18160,” Ratnaparkhi said. 

“The short term trajectory can remain positive as long as the index trades above these supports & the Nifty can test its weekly upper Bollinger Band near 18400. On the other hand, breach of these supports will be an indication of exhaustion in the trend from short term perspective,” he added.