Sensex, Nifty Rises For 2-Days Straight: Will Indian Stock Market Rise Or Fall On Thursday, January 16?

Stock market: Indian stock market rise for the second consecutive day on Wednesday, January 15, with Sensex nearing 77,000 mark and Nifty inching close to 23,300. Surge in European stocks, sharp appreciation in rupees from their record lows, and better than expected CPI inflation data lifted sentiment in market. However, the market continues to face intense foreign investor outflow. Despite the latest surge, Nifty is still below its 200 DMA and 200 EMA, and the bearish stick persists ahead.

Sensex:

Sensex ended at 76,724.08, higher by 224.45 points or 0.29%, after hitting an intraday high of 76,991.05. Stocks like Zomato, NTPC, PowerGrid, Kotak Bank, Tech Mahindra, Maruti Suzuki and Reliance Industries were top bulls, soaring by 1% to 4.5%.

Of the total 30-scrip on the benchmark, 19 stocks had advanced while 11 stocks declined. Among the top bears were M&M, Bajaj Finserv, Bajaj Finance, Axis Bank, Tata Motors, Nestle, and Sun Pharma which dipped by 1% to 3%.

Nifty 50:

The 50-scrip benchmark closed at 23,213.20, up by 37.15 points or 0.16%. During the trading session, the benchmark touched an intraday high of 23,293.65. From the total scrip, 27 advanced, 23 declined and only 1 stock remained unchanged. Bank Nifty saw a marginal upside to close at 48,751.70.

Realty, consumer durables. IT and midcap financial stocks drove the positive performance. India's volatility index was down by 1.4%.

Prashanth Tapse, Senior VP (Research), Mehta Equities said, markets witnessed cautious optimism for the second straight day as positive European cues coupled with a sharp appreciation in the rupee after the record fall aided market sentiment. The market is still bruised by persistent FII selling in the current month so far, while renewed uptick in oil prices has been holding back investors from taking any longish equity bets. Concerns over inflationary policies under President-elect Donald Trump are also adding to the cautious outlook. Investors also remained on high alert ahead of US CPI inflation reports on Wednesday.

Will Stock Market Rise Or Fall On Thursday, January 16

On Thursday, technically, Tapse said, Nifty continues to trade way below its 200 DMA and also below its 200 EMA. The bearish daily technical setup shall exacerbate more pain below the psychological 23000 mark and below the same, the next inter-month supports are placed at 21281 mark.

Further, Satish Chandra Aluri, Lemonn Markets Desk said, overall, sentiment remains cautious despite mild recovery in past two sessions, with 23000 acting as crucial support for now.

Aluri added, technically, Nifty 50 is looking very weak with prospects of a further breakdown, although RSI indicates near term conditions look oversold. Expect 23000 as key psychological support with next support around 22800. Bank Nifty closed largely flat with 48000 acting as near term support.

Moreover, Vinod Nair, Head of Research, Geojit Financial Services said, the domestic market continues to be volatile on account of elevated US bond yields, strengthening dollar, and increasing FIIs outflows. Global markets are cautious ahead of the US December CPI inflation data, which is anticipated to be in the elevated range in the short-term, limiting FED's ability to cut rates. Also, a rise in oil prices & dollar appreciation is likely to affect domestic inflation in the near future.