New Year Rings March of Bulls Pining Valuations in Stock Market

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Stock Market Turns Strong on 2^nd Day of Trading in New Year

By S Jha

New Delhi, January 2: Nifty was trading with gains of almost 130 points on Thursday morning. Bank Nifty also extended gains, tracking strength in broader stock market.

The new year has rung good chimes for the bulls so far with gains seen for the second consecutive sessions. The traders are eying attractive valuations to take fresh bets on stocks.

Sensex was also trading with firm. Nifty was trading above the key pivot of 23850. The next resistance for the 50-share index is placed at 23969 per chartists.

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The gains in the stock market were led by firm trends in auto, IT and banking counters. Maruti and Mahindra and Mahindra were leading with strength in the stock market on Thursday morning. However, the two-wheeler stocks were muted in the early trades. This is despite the fact that the likes of Bajaj Auto have sharply corrected in the recent months.

Infosys, HCL technology, LT Info, and others were trading firm in the Nifty index. Even the IT stocks saw sharp corrections in the last one month. The frontline IT stocks have corrected by five and more per cent in the last one month alone.

Bajaj Twins were also trading firm. Bajaj Finance and Bajaj Finserv were trading with gains of almost three per cent each in the morning trades. Shriram Transport Finance was also trading firm in the stock market with handsome gains.

Kotak Mahindra Bank was leading the banking scrips with gains in the early trades on Thursday. The large private sector bank is reacting to positive commentaries by the brokerages.

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The bulls appear to be showing interests in taking fresh positions in the stock market. Market participants also claim that they are hoping for a pre-budget rally. With sharp corrections in indices, the valuations are also enticing traders to enter the stock market. The brokerages have also boosted the confidence of the traders by saying that there could be double digit gains in indices in the year 2025. Traders claim that there have been sharp corrections in smallcap and midcap stocks in the last two months.

Prime Minister Narendra Modi-led NDA government at the Centre will unveil the full budget on February 1. The market participants are hoping that the budget may give a fresh momentum to the stock market.

Disclaimer: This article makes no recommendations for any trade in the stock market.

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