Indian equity markets kicked off the new year on a robust note, posting significant gains on Friday, January 2. The rally was fueled by widespread buying activity across various sectors and growing optimism as the third-quarter (Q3) corporate earnings season approaches.
Benchmarks Scale New Heights
The benchmark indices witnessed a powerful upmove. The Sensex climbed 573 points, or 0.67%, to settle at 85,762.01. The Nifty 50 index was not to be left behind, scaling a fresh intraday all-time high of 26,340 before closing at a record level of 26,328.55. This marked a gain of 182 points, or 0.70%.
The bullish sentiment extended to the broader markets as well. The BSE Midcap index advanced 0.97%, while the BSE Smallcap index rose 0.79%, indicating healthy participation beyond the large-cap stocks.
Technical Outlook and Trading Strategy
According to Sumeet Bagadia, Executive Director at Choice Broking, the Nifty 50 opened strongly and maintained its upward trajectory throughout the session, confirming underlying bullish strength. The index successfully breached the key resistance at 26,200 and closed above its previous all-time high.
Immediate resistance for Nifty is now placed in the 26,450–26,500 zone, with crucial support seen between 26,150–26,200. The daily Relative Strength Index (RSI) reading of 62.39 and its upward trend signal strengthening momentum. Market volatility remained low, with the India VIX index edging up marginally by 2.89% to 9.45.
Derivatives data points to heavy call writing and strong put accumulation at the 26,200 strike, establishing it as a pivotal level. Bagadia suggests that as long as the index holds above 26,200, a selective buy-on-dips strategy remains favorable, with a strict stop-loss placed at 26,150.
Banking Index Joins the Rally
The Bank Nifty mirrored the bullish trend, opening strong and witnessing a sharp rally to register its own fresh all-time high at 60,203. This move reflects strong buying interest and positive sentiment across banking stocks, supported by institutional participation.
For Bank Nifty, immediate resistance lies in the 60,400–60,500 range. The 59,800–59,900 band is critical as support for maintaining near-term stability. The index's daily RSI at 67.55 continues to trend higher, indicating strong bullish momentum. Traders are advised to maintain a bullish bias with a buy-on-dips approach near support levels, employing disciplined risk management.
Stocks to Watch on Monday
Sumeet Bagadia has recommended three stocks for consideration on Monday, December 29:
- Yes Bank: Buy at ₹22.29, Target Price: ₹23.93, Stop Loss: ₹21.48
- Motherson Sumi Wiring India: Buy at ₹49.85, Target Price: ₹53.33, Stop Loss: ₹48.10
- Dolat Algotech: Buy at ₹91.54, Target Price: ₹98.38, Stop Loss: ₹88.22
Disclaimer: This information is for educational purposes only. The views and recommendations are those of the individual analyst. Investors are strongly advised to consult with certified experts before making any investment decisions.
