The stock market is indicating the bullish trend will continue after the benchmark index Nifty rose over 2.4 percent this week without enabling a selling pressure.

Most technical indicators are demonstrating a bullish trend as the recent candle has engulfed the last two days of candle and closed near the day high while the Nifty has also been hovering above the Ichimoku Cloud formation with the positive cross line.

A momentum indicator RSI Stochastic has also indicated a positive crossover.

On charts, Nifty has support at 18,000 levels while resistance comes at 18,500 levels on a weekly basis, crossing above the same can show 18,650-18,800 levels.

In this week, easing fear over the severity of Omicron variant and earning season cheered investors though, some cautiousness was seen due to rising concerns over policy tightening to fight inflation.

US inflation hits fastest pace since 1982

In December, US inflation hit 7 percent, which is fastest pace since 1982 while India’s retail inflation spikes to 5.59 percent. Investors digested the US rate hike news and continued to pile up position in fundamentally strong stocks ahead of earning season and upcoming budget.

Going ahead, investors will keep a close eye on corporate earnings, China GDP growth, BoJ Monetary Policy economic data and OPEC monthly report. Further, impact of Omicron variant on economic activities will be closely assessed.

Top gainers and losers

Last week, heavyweight stocks like Infosys, HDFC and Reliance were among the top contributors to benchmarks weekly gains. Infosys posted a strong result and raised revenue guidance for FY22 which boosted investor sentiments. TCS numbers also came above street estimates and it also announced a Rs 18,000cr buyback plan while Wipro missed the street expectation.

Nifty gainers | CNBC TV18

L&T: Stock gained over 7 percent in one week as company bags two orders from overseas client

Adani Ports: Stock surged on appointment of new CEO. Further Adani and GUVNL have mutually settled old dispute over power purchase agreement.

Infosys: Stocks surged over 6 percent in one week as Q3 FY22 result beats estimates. Company have further raised the revenue growth guidance for FY22.

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Nifty losers | CNBC TV18

Wipro: Stock nosedives as Q3 FY22 result failed to cheer investors.

(Ankit Pareek is Research Analyst, Choice Broking)

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Published on: Saturday, January 15, 2022, 10:23 AM IST