Benchmark equity indices declined in early trade on Thursday. But, later both the benchmark equity indices bounced back to quote in the green amid optimism due to fresh foreign fund inflows.
At 10:16 am, Sensex was trading 160.74 points higher at 65,836.67, whereas Nifty was trading 44.45 points up at 19,719.90.
Among the Sensex firms, Bajaj Finance, Power Grid, Bajaj Finserv, JSW Steel, Titan and Tata Steel were the major laggards.
NTPC, Tata Consultancy Services, Tata Motors and HCL Technologies were among the gainers.
Varun Agarwal, founder, and managing director of Profit Idea said, “Diwali and Post Diwali market has notched up by nearly 250 points. Positive CPI data, better earnings expectations, and possibility of an interest rate cut in future is taking markets higher”.
Aggarwal added, “Flat opening expected today. The market is likely to remain rangebound. Nifty is expected to face resistance at 19,767 on the spot. We remain positively biased on the Indian economy for the medium term. Short-term support on Nifty lies at 18,837 and major support lies at 18468-18134”.
A substantial Open Interest (OI) at 19,800 Call and Put levels adds an element of caution, prompting traders to adopt risk-defined strategies.
“Huge OI at 19800 CE levels. Traders should look to trade with risk-defined strategies. On the downside, crucial support lies at 19300-19000 OI levels. Nifty has shifted in a broader range of 19800-19300 levels. Medium-term target of Nifty remains at 20466-21234-21410”, said Aggarwal.
“Volatility” is expected to continue. Expect India to “outperform global markets,” he said
“We expect a lot of inflows coming in Indian Markets. SIP’s (Systematic Investment Plans) have been on rise every month and lot of money is available with fund managers to park if dip comes. Investors should utilise this opportunity for medium term to accumulate quality mid and small cap stocks,” Aggarwal said.
The sectors anticipated to perform well include IT, Banking, Pharma, FMCG, Petrochemicals, and Metals, he added.
