Indian stock markets edged lower today with investors booking some profits after Sensex and Nifty had scaled fresh peaks in 18 of the past 27 sessions. The Sensex was down over 100 points to 46,774 while Nifty was holding the 13,700 levels. The breath of the market remained weak with BSE midcap and smallcap indices down about 0.4% each, though they were off early lows.
“(The markets) have run up one way for quite some time,” said Samrat Dasgupta, chief executive officer at Esquire Capital Investment Advisors, told Reuters. “We will have all dips being bought in.”
“I don’t see any big correction unless there is some interruption in liquidity. We are seeing average buying of at least ₹2000 crore ($271.96 million) per day from the FIIs,” Dasgupta said.
Nifty IT index today rose 1.6%, with HCL Tech, Wipro and Infosys up about 2%. The Nifty Bank Index however fell 1.2%. Lender HDFC Bank was the top drag, falling 1.8%.
“The market has opened on a soft note this morning and is still hovering around the 13700 levels. It is imperative for the Nifty to keep above this level as that would allow us to experience higher levels of 14000. We have a good support around 13400-13500 and till that holds, we are in bullish territory and should utilise dips or mild corrections to accumulate long positions,” says Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.
In a note HDFC Securities said: “Positional Resistance for Nifty is seen at 14300 odd levels. In current market scenario, instead of anticipating upside target, traders should focus on the concept of trailing stop-loss. At present, stop-loss in trading longs should be kept at 13547, which should raised up along with rise in the Nifty”, adding that support for the Bank Nifty is seen at 30345 in spot.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, suggests to remain invested in “quality names in performing sectors.”
“The steady decline in dollar index continues with the index dipping below 90. This is emerging market positive and is reflected in the sustained FII inflows. The Fed’s declared position to keep interest rates near zero through 2023 has emboldened the FIIs to pour money into emerging markets. The catch, however, is in high market valuations. High valuations are difficult to sustain but valuations can remain high longer than we think. So it makes sense to partially book profits while remaining invested in quality names in performing sectors,” he said.
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