Sensex Surges 0.68%, Nifty Up 0.63% on IT Stocks’ Positive Momentum
The stock market exhibited an upward trend on January 12 morning, buoyed by the surge in information technology stocks following positive quarterly results from industry leaders TCS and Infosys.
At 10:06 am, the Sensex witnessed a gain of 485.27 points, or 0.68 percent, reaching 72,206, while the Nifty advanced by 135.90 points, or 0.63 percent, touching 21,783.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted, “Resilience in IT stocks and strength in Reliance will enable the Nifty to consolidate around 21,600 levels. HDFC Bank results on January 16 will be keenly watched by the market for cues to the direction of Bank Nifty.”
In terms of market breadth, 2,005 stocks witnessed gains, 1,028 declined, and 86 remained unchanged. The broader market also saw positive movements, with the BSE midcap index rising by 0.3 percent and the smallcap index by 0.6 percent.
Sector-wise, the Nifty IT index led the gains, surging up to 5 percent, driven by Infosys jumping 5 percent and TCS gaining 3 percent in morning deals, a day after releasing their December quarter numbers.
Nifty pharma, Nifty PSU bank, Nifty bank, and Nifty metal were also in the green, while Nifty Auto, Nifty Pharma, Nifty FMCG, Nifty Energy, and Nifty Infra witnessed a dip.
Siddhartha Khemka, Head-Retail Research at Motilal Oswal Financial Services Ltd, suggested that investors might trade cautiously ahead of the release of inflation data later in the day. He emphasized, “TCS and Infosys Q3 results, their management commentary and guidance would provide an insight into the future outlook for the sector.”
From a technical perspective, market indecision was evident as the Nifty formed an indecisive spinning top candle on the charts. Sheersham Gupta, Director and Senior Technical Analyst at Rupeezy, pointed out the Nifty’s support level shifting from 21,500 to 21,600, anticipating a potential breakout from the current range.
Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, highlighted the significance of 48,000 as a substantial hurdle for Bank Nifty, suggesting a decisive breakthrough could trigger a short-covering rally. However, Ajit Mishra, SVP – Technical Research at Religare Broking Ltd, advised participants to prefer hedged positions and await further clarity amid the ongoing earnings season.