Sensex surpasses 73,000 with Wipro’s 6% surge

V.K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services. The sharp bounce in large cap IT stocks on the back of slightly positive management commentary indicates that an underperforming segment can surprise on the upside on news of a turnaround in the sector, he said.

New Delhi: Sensex crossed the 73,000 mark on Monday led by Wipro which was up by 6 per cent.

Sensex was up 532 points at 73,100.

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Besides Wirpo, the other IT heavyweights were Tech Mahindra, Infosys, HCL Tech up more than 2 per cent.

The rally in the market, primarily driven by momentum, is now getting support from fundamentals, says V.K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

The sharp bounce in large cap IT stocks on the back of slightly positive management commentary indicates that an underperforming segment can surprise on the upside on news of a turnaround in the sector, he said.

The IT index which shot up by 5 per cent on Friday will remain firm since HCL Tech and Wipro have more room on the upside, Vijayakumar added.

Nifty has broken out on the upside from the consolidation range and shows signs of further up move. An important driver of the rally is RIL which is moving up on large delivery based buying on news of commissioning of the Dhirubhai Ambani Green Energy project in H2 of 2024.

RIL, large cap IT and banking majors can provide fodder for the bulls in the near-term, he added.

Deepak Jasani, Head of Retail Research, HDFC Securities, said that shares in Asia were higher after China’s central bank unexpectedly kept a key interest rate unchanged, and in the wake of Taiwan’s election on the weekend. China’s central bank left the medium-term policy rate unchanged (2.50 per cent) on Monday, defying market expectations as signs of a weaker currency continued to limit the scope of monetary easing.

Jasani said Nifty ended at record levels and extended the winning streak for the fourth consecutive session on January 12.

At close, Nifty was up 1.14 per cent or 247.4 points at 21,894.6.

Nifty rose to a fresh all-time high, breaking out of the last two weeks range and also out of a flag pattern on daily charts.

On weekly charts it rose 0.85 per cent forming a Hanging Man pattern at the top. This reflects the possibility of a reversal on breach of the low of the week i.e. 21,449.

Nifty could rise towards 21,990 and later 22,280 in the coming week while 21,764 and 21,449 could be the supports.