Indian stocks closed higher on Jan. 25, snapping a five-day losing streak ahead of the expiry of January futures and options contracts and the Federal Reserve’s interest rate decision.
The BSE Sensex rose more than 360 points to close above the 57,850 level, while the Nifty50 rose more than 120 points to close above the 17,270 level, supported by banks, autos, FMCG, metals and pharmaceuticals.
The broader market also participated in the bull run, with the Nifty Midcap 100 and Smallcap 100 both up 1%.
Maruti Suzuki closed up 6.83 per cent at Rs 8,602.60 per share, the top gainer on Nifty, followed by Axis Bank, which closed up 6.76 per cent at Rs 752.20 per share.
Zee Entertainment Enterprises surged 7.72 percent to close at Rs 288.80 per share, the top gainer in the futures and options sector. On the other hand, Bharat Dynamics rose 4.16 percent to settle at a record close of Rs 465.35. Aside from a small consolidation breakout on the daily chart, the stock appears to have had multiple breakouts. However, on the weekly chart, the counter is moving within a well-defined 30-week channel, so its initial target is likely to be the upper end of the channel, with a value around Rs 8,700.
Hence, for further upside, it needs to break out of the aforementioned channel, in which case a lifetime high around Rs 9,990 can be expected eventually.
For the time being, fresh buying should be considered on dips, but stop losses below Rs 7,887 on close and look for a near-term target of Rs 9,000.
Complete News Source : Money Control
