Benchmark indices BSE Sensex and NSE Nifty ended trade mildly in the green, extending gains for the second day in a row. Sensex jumped over 200 points in the morning trade however, the indices pared their intraday gains to close mildly in the positive territory, up 0.1%. Sensex ended at 61510 while Nifty ended at 181267. Nifty PSU Bank and Nifty Media ended the day with gains of over 1%, while Nifty Metal fell 0.4%. Bank Nifty hit a record high at 42,813, up over 350 points or 0.83% intraday. “Following the global trend, domestic indices continued to cautiously build gains as investors braced for the FOMC meeting minutes. The declining dollar index and falling bond yield provided short-term relief, while the FIIs’ unpredictability kept investors at bay,” said Vinod Nair, Head of Research, Geojit Financial Services.
S Ranganathan, Head of Research, LKP SecuritiesMarkets witnessed range-bound activity today with profit-taking paring gains in late afternoon trade. PSU Banks however continued their stellar run for the third consecutive day this week. In the broader markets, railway stocks were sought after yet again with many of them holding on to their handsome gains in the last two months.
Deepak Jasani, Head of Retail Research, HDFC SecuritiesGlobal markets were in the positive or recovered from early losses, even as investors digested the new COVID curbs in China ahead of key Eurozone business activity data, as well as the minutes from the last Federal Reserve meeting. Broad market indices did better than the Nifty even as the advance-decline ratio improved to 1.25:1. Nifty could trade in the 18179-18344 band for the near term with dip buying seen to be prevalent.
Osho Krishan, Sr. Analyst – Technical & Derivative Research, Angel OneOn a technical aspect, the index is firmly placed above all the major exponential moving averages on the daily chart and is in a cycle of higher highs – higher lows, construing a positive setup. However, ahead of the monthly expiry, Nifty has seen some tentativeness at higher levels; but we do not construe this as any sign of worry. Traders are just opting to take some money off the table ahead of the expiry event. As far as levels are concerned, 18100-18200 is likely to cushion any fall in the index, followed by the sacrosanct support of the 18000 mark. Whereas on the flip side, the 18400-18450 is likely to remain the sturdy wall for the index in a comparable period.
There have been contributions across the board, wherein the significant benefactors that boosted the bullish sentiments were from the PSU Banking space. Looking at the recent developments, it is advisable to avoid aggressive bets as the market might act volatile on the expiry day. Meanwhile, we advocate to keep identifying apt themes and potential movers within the same that are likely to provide better trading opportunities and stay abreast with global developments.
