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Taking Stock | Market ends flat amid high volatility; all eyes on inflation data

Hindalco Industries, Sun Pharma, BPCL, UltraTech Cement and HDFC Bank gained the most on the Nifty, while losers included Bharti Airtel, Cipla, Divis Labs, Apollo Hospitals and HUL

January 11, 2023 / 04:11 PM IST

The Indian equity benchmarks closed flat after a highly volatile session on January 11, a day ahead of the release of India and the US's CPI inflation data.

The Sensex closed 9.98 points, or 0.02 percent, lower to 60,105.50 and the Nifty dropped 18.50 points, or 0.10 percent, to close at 17,895.70.

Despite positive global cues, the market opened negative but recovered only to swing between gains and losses throughout the session.

"After a volatile session, the domestic market anchored near the flat line as investors remained cautious ahead of the release of inflation data, though positive sentiments from global counterparts attempted multiple recoveries in between," said Vinod Nair, Head of Research at Geojit Financial Services.

"India’s CPI for December is projected to remain unchanged, while the US CPI is estimated to further cool down from November’s level of 7.1%. "

"The relentless selling by FIIs as a result of the premium valuation of the domestic market is weighing on the domestic market," he added.

Also Read: Poll | December CPI inflation seen little changed at 5.9%, November IIP growth may rebound to 3.2%

Hindalco Industries, Sun Pharma, BPCL, UltraTech Cement and HDFC Bank were among the top gainers on the Nifty, while losers included Bharti Airtel, Cipla, Divis Labs, Apollo Hospitals and HUL.

On the sectoral front, the Nifty FMCG index fell 1 percent, while auto, pharma, energy and infra were down 0.5 percent each. Nifty Bank, metal, information technology and PSU Bank indices added 0.3-0.7 percent.

Broader indices performed in line with the benchmarks, with both BSE midcap and smallcap indices closing flat.

On the BSE, auto, FMCG, healthcare, power and oil & gas indices shed 0.2-1 percent. Bank, capital goods, metal and information technology indices gained 0.3-0.8 percent.

More than 100 stocks touched their 52-week high on the BSE including SAL Steel, JSPL, CG Power, Marksans Pharma and Modern Dairies.

On the other hand, Biocon, Gland Pharma, Glaxosmithkline Pharmaceuticals, Vodafone Idea, Laurus Labs, MT Educare, Omaxe, Rolta and Sintex Industries, touched their 52-week low.

Also Read - Budget 2023 | Goldman Sachs sees no significant reforms, fiscal prudence expected

Among individual stocks, a volume spike of more than 100 percent was seen in NMDC, Laurus Lab and Indian Oil Corporation.

A short build-up was seen in Bharti Airtel, Laurus Lab and SRF, while a long build-up was seen in Tata Communications, NMDC and Indian Oil Corporation.

Also Read - Rupee’s trendline breach opens up a path for further gains

Outlook for January 12

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

While the markets moved in a narrow range, select bouts of intra-day volatility continued to keep investors at bay. The latest US Federal Reserve chairman's speech too didn't signal any moderation in their rate hike approach going ahead, which has been hurting investors' sentiment.

Currently the market is witnessing non directional activity and, perhaps, traders are waiting for the either side breakout.

For bulls 18,000 would be the important breakout level to watch out for and above the same, we can expect a quick uptrend rally towards 18,100-18,150 levels. On the flip side, trading below 17,800 may trigger further weakness up to 17,700-17,675.

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas

The Nifty has been witnessing sharp swings in both the directions, which is a part of the short term consolidation process. In terms of the price patterns, the oscillations in the last few sessions have resulted in a triangular pattern formation.

The Nifty received support on the downside as it approached the lower end of the pattern. 17,800 is a key support on the downside. Unless that breaks on a closing basis, the index is expected to witness recovery once again.

On the higher side, immediate hurdle is at 18,000 beyond which it can test 18,100-18,150 in the short term.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Rakesh Patil
first published: Jan 11, 2023 03:59 pm