Benchmark indices Sensex and Nifty started the year 2023 on a positive note. The Sensex gained 327 points or 0.54 per cent to close at 61,167. The Nifty gained 92 points or 0.51 per cent at 18,197.

The good news for India was that China plans to raise export tariffs on aluminium from this month. This could spur demand for India’s aluminium since China’s exports would be curbed due to high cost now. Metal stocks in India rose. The BSE Metal index gained 2.83 per cent on the news. Tata Steel rose by 5.7 per cent and Hindalco by 2.8 per cent.

FPIs remain sellers

Foreign portfolio investors (FPIs) started the year with selling in both the cash and derivatives segment. Data showed FPIs were net sellers to the tune of ₹212 crore in the cash segment and ₹716 crore in the index futures segment. They were net buyers of ₹519 crore in index options. However, the domestic institutional investors were net buyers of ₹743 crore in the cash segment. 

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, is of the view that a sustainable move for the Nifty index above 18265-18300 levels could take the index to 18500 levels and the support on the downside was placed at 18080 level. 

“A reasonable positive candle (on the technical chart) was formed on the daily chart, placed beside the long negative candle of Friday. This signals minor strength of bulls to come back from the lows. A decisive move above 18265 levels could negate the bearish pattern of the dark cloud cover that formed on Friday,” Shetti said.

Stock-specific action

Ruchit Jain of brokerage firm 5Paisa is of the view that there may not be significant directional move in the Nifty index in the near term, but stock-specific moves could provide good trading opportunities and traders should capitalise on the same.

Most global markets were closed for the New Year and there were no major cues. Analysts are of the view that markets would be moving on global cues in the coming days. Also, anticipation from this year’s upcoming budget is running low, as there is a belief that most of the decisions are being taken by the government outside the budget. Still, the markets would await the government’s spending plan and tax breaks ahead of the 2024 general elections. These themes could dominate the entire month of trading in markets. Eyes will also be upon the Federal Reserve, and commodity and currency prices. 

The BSE Smallcap gauge rose 0.84 per cent and Midcap index advanced 0.57 per cent. Among the sectoral pack, besides BSE Meal, Telecommunication, Services, Commodities, Realty and Industrials scored handsome gains.

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