Indices Trim Morning Gains, Nifty IT Rises in a Flat Market – In the mid-day trading session, both the benchmark Sensex and Nifty have retreated from their morning gains to trade relatively flat. The market is gearing up for the upcoming earnings season for the quarter ending December. Global cues are mixed, with uncertainties surrounding the US Federal Reserve’s rate cut plans contributing to doubts, causing the US Treasury yield to approach the 4 percent mark.
Current Market Scenario:
As of 11:48 am, the Sensex is marginally up by 0.08 percent at 71,902.84, gaining 55.23 points. Similarly, the Nifty has recorded an 0.08 percent increase, rising by 18 points to reach 21,676.6. The market breadth reflects mixed sentiments, with 1,278 advancing stocks, 1,096 declining, and 11 remaining unchanged.
Sectoral Trends:
Sectoral indices depict a mixed picture, with Nifty IT leading the gains with a surge of 1.2 percent. Other sectors in the green include Nifty Metal, Nifty Realty, and the auto index. Conversely, Nifty Pharma and Bank Nifty have recorded losses of up to 0.6 percent.
Fundamental View:
Analysts highlight that the current market rally is predominantly driven by retail investors rather than institutions. Despite concerns about overvaluation, midcap and smallcap indices are reaching new highs, fueled by retail enthusiasm. Experts caution about the sustainability of valuations and anticipate a correction.
“The risk to the global rally can come from the Fed, which may turn out to be less dovish than market expectations,” warns VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. He advises investors to closely monitor the Federal Reserve’s communication.
Technical View:
Technical analysis suggests a positive move in the Indian markets, with support observed at 21,500 levels. Traders are advised to buy on dips with a strict stop loss at 21,500 on a closing basis. Short-term traders are encouraged to book profits near the resistance levels of 21,750-21,800.
For Bank Nifty, the charts indicate potential support at 48,100, followed by 47,800. On the upside, resistance levels are expected at 48,300 and 48,640.
Market Influencers:
The US 10-year bond yield surpassing the 4 percent mark, a 2 percent decline in oil prices, and a rebound in gold prices are significant factors influencing the market sentiment. Positive job additions reported by the US private sector in December contribute to a strong labor market, despite concerns about higher interest rates.
Stock Movements:
Notable gainers in Nifty include Adani Ports, Hero MotoCorp, Infosys, and TCS. Meanwhile, Sun Pharma, Britannia Industries, Nestle India, and Cipla are among the key losers.
In the broader market, Jupiter Wagons and BEML saw gains following orders worth Rs 802 crore from the defense ministry. On the flip side, HDFC Bank witnessed a 0.7 percent decline after reporting its Q3 update.
Macrotech Developers surged by 9 percent after a positive Q3 business update, achieving its best-ever pre-sales performance of Rs 3,410 crore.
Disclaimer:
Investors are advised to exercise caution and seek advice from certified experts before making investment decisions. The views expressed by investment experts are their own and not necessarily reflective of the website or its management.