Bull run in January F&O expiry

Indian equity markets closed at its more than two-month high on Wednesday. The new year’s first month's future & option expiry has witnessed bullish mood on account of forthcoming announcement of the Union Budget.

Nifty was able to cross levels of 8600 on Wednesday. BSE Sensex and Nifty indices reported increase of 1.5 per cent and 1.21 per cent respectively. At the closing bell, the Nifty rose 126 points at 8602 and the BSE Sensex increased 332 points to close at 27708. On the NSE, 40 shares closed in green, while 10 shares ended the day in red and 1 remained unchanged.

All sectoral indices closed in green except IT. Auto index surged more than 300 points. Bankex surged 500 points. Consumer Durables, Capital goods and Oil & Gas rose more than 200 points each. However, IT index got reduced by 22 points. Mid-cap and small-cap witnessed surge by 114 and 112 points respectively.

Asian markets too closed on a positive bias on Wednesday. Shanghai rose 0.22 per cent. Hang Seng was increased by 0.43 per cent. Nikkei also rose by 1.43 per cent. KOSPI increased by 0.06 per cent, while Taiwan’s TAIEX rose by 0.25 per cent.

European markets were also trading in positive sentiment.

Derivative Analysis

Nifty future closed on positive note and closed at 8604. Going ahead 8675/8543 will be the immediate support level.