Market has been consolidating for a while, however all dips are being bought eventually. Foreign institutional investors have continued to pour money into India, providing massive support to market rally.
“Markets globally have been consolidating and even slowly drifting down during this week. This trend is due to high valuations and the absence of any fresh positive triggers to take the market higher. This trend might linger for some more time before some trigger leads to a breakout,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“Meanwhile, investors can utilize the drift in the market to buy quality stocks with good earnings visibility. IT is one sector that looks promising. The broader market is witnessing frenzied activity, particularly in the PSU stocks. The speculative activity in this segment has been on the rise following the privatization proposals in the Budget.”
Factors driving markets
- US bond yields rise: Benchmark US Treasury yields edged higher, having hit a near one-year peak earlier in the week. The dollar was also set to mark a weekly gain.
- Unemployment grows: US jobless claims unexpectedly increased last week, raising the possibility of a second straight month of tepid job growth despite a decline in the new Covid-19 infections.
How are bluechips doing
After opening in the red, benchmark indices pared some of the losses. At 9.58 am, BSE flagship Sensex was down 99 points or 0.19 per cent to 51,226. NSE benchmark Nifty followed and fell 31 points or 0.20 per cent to 15,088.
“The markets have opened below 15,100 which is a short term support for the Nifty. We need to evaluate today’s closing price for the markets to continue remaining bullish, we would need to close above 15,100. A break of this level on a closing basis would alert the bearish triggers of the market and it can drop to 14,800 and then 14,600. It would be better to evaluate the index on Monday with new weekly support and resistance levels,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.
In the 50-share pack Nifty, GAIL was the biggest gainer, up 3.35 per cent. UPL, Hindustan Unilever, Adani Ports, HDFC Life Insurance, HCL Tech, L&T and Reliance Industries were among other gainers.
Power Grid was the top loser in the pack, down 2.43 per cent. Tata Steel, ICICI Bank, Tata Motors, Eicher Motors, Hero MotoCorp, Bajaj Auto, Hindalco and Asian Paints were other losers in the pack.
Broader market indices traded mixed but outperformed their headline peers in the morning trade. Nifty Smallcap was up 0.12 per cent while Nifty Midcap fell 0.23 per cent. Broadest index on NSE, Nifty 500 was down 0.15 per cent.
Bank of India, Rajesh Exports, Gujarat Gas, Karur Vysya Bank, NBCC and TV18 Broadcast were among major gainers from the space while PNB Housing Finance, Indiamart Intermesh, HEG Infra, REC, Apollo Hospitals and Ashok Leyland were under selling pressure.
MSCI’s broadest index of Asia Pacific shares outside of Japan was down 0.1 per cent at 733.67 from Thursday’s record high of 745.89. The index is on track for a small weekly loss after two consecutive weeks of gains.
Australia’s benchmark S&P/ASX 200 index was down 0.8 per cent while Japan’s Nikkei fell 0.4 per cent. Chinese shares started in the red with the blue-chip CSI300 off 0.6 per cent.