Buying interest in financial, oil & gas, IT and automobile shares pushed the headline indices higher, though losses in pharmaceutical and healthcare names played spoilsport.
Siddhartha Khemka, Head-Retail Research at Motilal Oswal Financial Services, expects volatility in the market to continue going forward given the uncertainty around the Omicron variant of COVID-19 and the tapering of pandemic-era stimulus by the Fed.
Ajit Mishra, VP-Research at Religare Broking, expect the fear of the Onicron variant of COVID-19 to persist in the global markets in the near future.
“The index has support at 16,800 and resistance comes in at 17,350, a level, which, if crossed, may lead to fresh buying interest, helping the index test 17,500-17,800 levels.
Rohit Singre, Senior Technical Analyst at LKP Securities, said the Nifty index has formed two strong hurdle zones on the higher side, around 17,220 and 17,300.
The number of builders in the sector is down by 50 percent over the last four or five years, which means that the product that is coming out in the market is good, and investors and buyers are seeking that product.
“We think that this year will be a year of volume uptick that will lead to the prices consolidating next year and in fact starting to move up.
In fact, we are at the Rs 150-160 level, and this number, if we were to adjust it to inflation, could be somewhere in the region of Rs 250 in comparison to where ARPUs were in 2016,” he said.
This space is attractive and of late, we have seen price increases from all players, even the one player which has deep pockets and which had ruffled feathers in the space, even that player has raised prices.
Having said that, I think expectations in terms of EV launches over the next few years, and the stiff competition that it probably faces, Tata Motors is gearing up to the competition as well as expectations in terms of creating their EV models which are competitive in terms of having volumes go up as well,” he said.
“If you probably look at market share purely in terms of toothpaste as well as toothbrushes, I think that has been stable for some time…
The 30-scrip index rose 619.9 points or 1.1 percent to end at 57,684.8 and the broader Nifty50 benchmark settled at 17,166.9, up 183.7 points or 1.1 percent from its previous close.
Independent market expert S Krishna Kumar believes there is definitely an improvement in terms of the semiconductor supply side, but the new capacities, required for growth, are going to come only in the September quarter of the next year.
“If you look at the Indian market and how the EV transition is happening, we are seeing that probably the two-wheelers and the passenger buses are the ones where the offtake is a little bit better.
If you look at the auto ancillary chain, which supplies into the CVs in a big way, like the braking systems, the engine parts, the forgers etc., they will be doing well in addition to the broad brush diversified auto ancillaries.
Independent market expert S Krishna Kumar believes the taper talk by the US central bank along with the new COVID variant probably triggered some profit taking in the market.
“The point to note is that these are corrections in a long-term bull market.
Rohit Srivastava, Founder and Strategist at Indiacharts.com, said the recent correction looks like a routine one, which typically lasts 5-6 weeks.
My original anticipation was that it was going to be a rangebound sideways correction between October and November, but instead, it ended up being more downward…
“If the Fed continues with the pace of tapering as announced, it is expected to stop its bond buying programme by mid 2022.
Definitely, this stimulus package provided unprecedented support to financial markets and the economy, but its spillover effect contributed to greater capital flows into emerging markets like India mainly due to interest rate differentials.
“For an IPO, creating a base takes a few weeks and in those few weeks, it is determined how demand and supply dynamics are taken care of.
Joshi said the IPO base still appears to be incomplete for Paytm.
Mahindra & Mahindra reported total sales of 40,102 units in November, down 6.2 percent on a year-on-year basis.
TVS Motor Company to report total sales of 2.72 lakh units in November, down 17.2 percent on a year-on-year basis.