Weekly Market Wrap: Nifty settles 0.8% higher; auto index top sectoral gainer

Indian equities for the week ended January 3, 2025 ended with decent gains as sentiment turned positive amid better domestic macros and improved global cues. For the week to January 3, 2025, Sensex gained 0.67 per cent and closed at 79,223.11, while the Nifty50 index ended 0.8 per cent higher. Broader markets also ended with impressive gains for the week, with the Nifty Midcap 100 index settling 1.7 per cent higher for the week.

Nonetheless, as after two days of recovery, the equities tumbled, Vinod Nair, Head of Research, Geojit Financial Services said, "A sell-on-rally sentiment prevails in the market due to a strong US dollar, high valuation, and a shift towards a multi-asset investment strategy"

Reducing US jobless claims and potential policy shifts in the US indicate that the FED is not in a hurry to reduce interest rates in the near term. Looking ahead, the market is likely to focus on Q3 earnings, with expectations of improvement in earnings on a QoQ basis, he added.

Overall in the first two sessions, FIIs net sold equities worth Rs 275.96 crore, signalling a weakening trend in their selling spree.

Top Nifty gainers and losers for week to January 3, 2024

Top gainers during the week were ONGC (up over 9 per cent), Eicher Motors (up 9 per cent), Maruti Suzuki (up 9 per cent), Bajaj Finserv and Bajaj Finance up over 7 per cent each.

Furthermore, top laggards during the week included stocks like Wipro dragged nearly 5 per cent, Hindalco Industries down over 4 per cent, ICICI Bank down over 3 per cent, Dr. Reddy's Labs down nearly 3 per cent and Adani Ports down 3 per cent.

Top Sectoral gainers and losers 

During the week, most indices ended in the green, with the auto pack buzzing with gains of nearly 4 per cent after December sales from most auto players barring names like Hero MotoCorp buoyed the sentiment. Other sectoral gainers included FMCG, Energy, Consumption and PSE indices - all ending with gains of over 2 per cent.

However, the realty sector was the top loser ending with a cut of over 2 per cent, while the IT index managed to end in the green with minor gains.

Technicals

Rupak De, Senior Technical Analyst at LKP Securities said, "The Nifty was unable to break above the 50 EMA on the daily timeframe, resulting in a market correction. However, sentiment remains positive as the index closed above 24,000."

The RSI shows a bullish crossover. On the upside, the index may rise towards 24,200–24,220, with a break above 24,220 potentially pushing it to 24,500. Conversely, a decisive move below 24,000 could lead the index towards 23,700, he added.

Factors that will drive markets next week

Looking ahead, the market is likely to focus on Q3 earnings, with expectations of improvement in earnings on a QoQ basis, added Vinod Nair, Head of Research, Geojit Financial Services.