"Markets started the new year on a lukewarm note but PSU banks and IT stocks took the lead and supported the index to recover its losses. In the last session, consumer goods and metals counters fueled the rally; However, due to strong profit booking decline in the last session, the index erased its gains to end the first trading session of the new year at 21,741.90 with a marginal gain of 10.50 points," said Aditya Gaggar, director of progressive actions.
"Mid and small cap companies extended their morning gains and outperformed the Frontline index. On the daily chart, the index has formed a Gravestone DOJI candlestick pattern indicating rejection at the upper end. The possibility of a bearish divergence still persists and, if the same happens, confirmed, then we may see a correction to 21,500; conversely, a convincing close above 21,800 will be considered as a divergence failure," he added.
