The Indian stock market traded in the green on Tuesday, with benchmark indices Sensex and Nifty extending gains as oil prices briefly dipped below $100 per barrel and bond yields continued to cool down, boosting investor sentiment.
Sensex rose around 110 points to trade around 74,970, while Nifty 50 gained 39 points to hover above 23,450, as seen at 9.40 am. Broader markets also traded in the green, with Nifty Midcap 100 and Nifty Smallcap 100 indices rising up to 0.5%.
Eternal, HDFC Bank, Adani Ports and IndiGo shares gained around 1% each to lead gains on Sensex, while HCLTech, Infosys, Tech Mahindra and TCS shares dropped around 1-2%. Most of the sectoral indices traded in the green, but Nifty IT dropped around 1%. The overall market breadth turned positive, with NSE seeing 2,065 advances against 916 declines, while 108 stocks remained unchanged.
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What lies ahead for Dalal Street?
Slight cooling in crude prices and US 10-year bond yields have helped to bring risk-on sentiment in the US equity markets, said V K Vijayakumar, Chief Investment Strategist at Geojit Investments. He noted that this positive development will reflect in other equity markets, too. In India, there will be renewed focus on the secondary market since the NSE IPO is over and as refunds start coming in, that will add to the liquidity in the market, he said.
“It is time for a sectoral pivot favouring the fairly valued large-caps. There are early signs of this happening with the firming up of the HDFC Bank stock. But it will take time for this to become a trend. Better growth prospects and momentum are in favour of SMIDs. With precious metals stabilising and fixed income returns becoming attractive, investors can now opt for a multi-asset strategy,” the analyst added.
This would be a good choice now since it will balance growth prospects with protection against volatility, thereby offering moderate but stable returns, according to Vijayakumar.
Nifty has been forming a higher-high, higher-low pattern for a fourth straight day yesterday, with the RSI rising and approaching the reference line, signalling growing bullish momentum, Axis Securities said. It sees the index finding Immediate support at 23,300, and a sustained break below this level could trigger a decline toward 23,100–23,000.
On the upside, 23,500 remains the key resistance, and a decisive move above this level could pave the way for an advance toward 23,700, it added.
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Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.
