After remaining under pressure for the fourth straight session, the market on December 8 witnessed some buying as the benchmark Sensex ended higher by 160 points or 0.26% at 62,570.68, and the Nifty rose 48.80 points or 0.26% to settle at 18,609.30.
Amid mixed global cues, the market started on a flat note but immediately touched the day's high and remained flat with positive bias throughout the session, before finishing near the day's high.
"PSU Banks fired up markets for the fourth consecutive day this week as the PSU Bank Index rose 4% today as positive tailwinds coupled with under ownership stepped up momentum in several stocks," said S Ranganathan, Head of Research at LKP securities.
"With Indices at record highs, investors were seen actively accumulating several state-owned banks with vast reach and trust available at reasonable valuations," Ranganathan added.
Stocks and sectors
Axis Bank, IndusInd Bank, Larsen and Toubro, Eicher Motors and Hindalco Industries were among the top Nifty gainers, while losers included Sun Pharma, Divi's Labs, Power Grid Corporation, NTPC and TCS.
On the sectoral front, the Nifty PSU Bank index rose nearly 4 percent and the Nifty Bank index rose 1 percent, touching a fresh high of 43,640.90, intraday.
However, the pharma index shed 1 percent, and energy and information technology indices ended marginally lower.
BSE midcap and smallcap indices rose 0.3-0.4 percent.
On the BSE, power, bank and capital goods indices were up 1 percent each, while the metal index was up 0.67 percent. On the other hand, healthcare, power and realty indices were down more than 0.5 percent each.
Among individual stocks, a volume spike of more than 400 percent was seen in Coromandel International, Bharat Forge and Sun Pharma.
A long build-up was seen in Bank of Baroda, Bharat Forge and Coromandel International, while a short build-up was seen in Sun Pharma, LTIMindtree and Dixon Technologies.
Power Mech Projects, Cummins India, Skipper, Eveready Industries, Power Finance Corporation, Karur Vysya Bank, Indian Bank, Gravita India, Central Bank Of India, and Bank Of India touched their 52-week high on the BSE.
Outlook for December 9
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
The Nifty witnessed a brief consolidation in the range of 18,500-18,600 in the last couple of sessions & is poised for a recovery. In terms of the price patterns, the index has formed an Ending Diagonal pattern on the hourly chart whose follow-through is expected on the upside.
Going ahead, 18,650-18,670 is the immediate resistance zone beyond which fresh momentum can get built up. Overall short-term target continues to be at 19,000 with a reversal below 18,500 on a closing basis. The Bank Nifty has taken a strong leap on the upside from the support zone of 43,000-42,900.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
With the RBI's credit policy overhang now behind them, investors bought selectively in banking, metal and automobile stocks, although the undertone remained cautious ahead of next week's US Federal Reserve meeting on the interest rates.
Central banks have in fact given more hints that interest rate hikes would continue next year, which investors fear could lead to a likely recession in the Western countries and the US and subsequently impact growth.
Technically, the inside body candle on daily charts is indicating non-directional activity and indecisiveness between the bulls and bears. For bulls, 18,675 would be the important breakout level to watch out for. And above the same, we can expect a quick uptrend rally up to 18,800-18,835.
On the flip side, trading below 18,500 may fuel further weakness up to 18,435-18,400.
Prashanth Tapse - Research Analyst, Senior VP (Research), Mehta Equities
After a topsy-turvy day's session, bulls found some feet towards the fag-end. Nifty reclaimed the 18,600 mark while Sensex managed to close just below the psychological 62,600 mark.
The upmove came despite a rate hike done by RBI yesterday and a potential rate hike scare by the Fed in its December 14th FOMC meeting.
Technically, Nifty’s make-or-break support is seen at the 18,417 mark, while the index faces an immediate hurdle at its all-time high at the 18,888 mark.
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