Indian stock market index Sensex And taking a sigh of relief after the recent fall in Nifty closed higher today. But the broader markets continued to suffer. The blue-chip NSE Nifty 50 index closed 0.06% higher at 18,125.40, while the benchmark S&P BSE Sensex rose 0.2% to 60,967. Banking stocks rose 14.2% with private sector lender ICICI Bank helping the Nifty Bank index hit a new peak. Selling pressure continued on the broader front, with midcap and smallcap indices falling in the range of 1.8%-2.3%.
Nifty mid- and small-cap indices fell over 4% and 5% respectively last week. Analysts said the fall in small and mid-cap stocks indicated a pullback from retail investors, who were caught in a correction last week amid fears of higher valuations.
“We expect the banking pack to remain in focus as Axis Bank and Kotak Bank report their numbers on October 26. On the index front, Nifty should remain at 17,950 levels for any rebound otherwise profit taking will resume. Needless to say, the scheduled monthly expiry will keep yearning high across the board. Amidst all, participants should continue with a cautious approach till we see some concrete signs of a resumption of the trend,” said Ajit Mishra, VP – Research, Religare Broking Ltd.
Today the auto index and the IT sub-index fell 1.8% and 1.1%, respectively. Nomura today moved India shares from “overweight” to “neutral” citing the unfavorable risk-reward due to high valuations and said many positives are looking to be priced in.
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “This outperformance from the bank’s results so far is justified and the trend may continue as valuations are relaxed in an otherwise high-value market in the banking segment.”
Shrikant Chauhan, Head of Equity Research (Retail), Kotak Securities said: “We are of the view that the short-term structure is weak, but if the index manages to trade above 18000-18050 levels, a quick pullback rally is not ruled out. can go. Once again, 18050 can act as a sacred support level for the day traders, and on top of that, we can expect an extension of the pull back rally to 18250-18310. On the other hand, below 18050 or below the 20-day SMA, the uptrend will be weak.”
Deepak Jasani, Head of Retail Research, HDFC Securities, said Nifty has a stable and upside potential, although a correction in the broader market is a few days away.
On today’s market performance, Nagraj Shetty, Technical Research Analyst, HDFC Securities, said, “A positive chart pattern of higher tops and bottoms persists on the daily chart and Monday’s low of 17968 can be considered as a new high of the sequence.” But, we need confirmation of this upward move in the subsequent session to call it a higher bottom reversal.” (with agency input)
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