What's in store for the markets in the first week of Samvat 2079?

The markets entered Samvat 2079 on a strong note with the BSE Sensex and the Nifty 50 rising 0.88 per cent each in Muhurat trades on Monday evening.

While the Sensex surged 525 points to end at 59,832 levels, the Nifty moved up 155 points to close at 17,731 levels.

In the process, the frontline indices logged their best Muhurat-day gain in 14 years.

The last time the markets witnessed this stupendous performance was in the Muhurat session in 2008 when the Sensex and the Nifty surged 5.86 per cent and 6.35 per cent, respectively.

… and in the last five years, the markets have always given a positive return on Muhurat trading day.

Meanwhile, the mid- and small-cap indices on the NSE moved up around 0.5 per cent and one per cent each in Muhurat trade on Monday.

Among individual stocks, leading the gains among the Sensex stocks in the Muhurat session were Nestle India and ICICI Bank. Both the stocks rallied over two per cent each.

State Bank of India, HDFC twins, Dr Reddy’s were some of the other key gainers – rising between 1.25 per cent and 1.7 per cent in Muhurat trade.

HUL, on the other hand, ended 3.05 per cent lower at Rs 2,574 levels on the BSE.

However, technically, the market seems to be on a strong footing. Avdhut Bagkar of Business Standard shares the key levels to watch: Sensex, Nifty look strong on technical parameters. Key levels to watch – Sensex: 59,000; Nifty: 17,500. Nifty support at 16,800; Sensex: 56,000. Nifty Midcap 100 index can rally to 32,000; 7% upside from current levels. Nifty Small-cap index faces resistance at 10,000-mark. 

Speaking on the current market trend, Ajit Mishra, Vice-President of Research at Religare Broking expects the markets to rally if there are no disturbances, and broader markets to play catch-up in the near term.

Mishra says, comestic rally to sustain if there is no negative shock. Expect broader indices to play catch up. Stock strategy: Be selective; hold strong companies. 

Going ahead in this holiday-shortened trading week, global cues, FII flows, rupee movement, monthly F&O expiry and the ongoing earnings season can sway the market mood either way.

On the earnings front, Chennai Petro, Dabur, PC Jeweller, SBI Cards, Tata Chemicals, Blue Dart, Dr Reddy’s, Maruti Suzuki India, Tata Power and Indian Oil are some of the prominent companies scheduled to announce earnings this week.