Stock market today: The benchmark indices Sensex and Nifty opened higher for the fifth consecutive session on Tuesday, driven by optimism surrounding US-China trade discussions and favorable domestic policy cues. However, the initial rally lost momentum quickly, and the market turned volatile.
As of 9:32 am, the BSE Sensex had declined by 160 points, or 0.19%, to 82,284, while the Nifty50 slipped 5 points, or 0.02%, to 25,097.
In sectoral performance, Nifty Bank and Financial Services dipped by 0.3% and 0.5%, respectively. On the other hand, sectors like Nifty Auto, IT, Media, Metal, and Oil & Gas recorded gains of up to 1.1%. In the broader market, the Nifty Midcap100 edged up by 0.2%, while the Smallcap100 advanced by 0.3%.
“ Technically speaking, whether it’s a pennant or a rectangle that the market is breaking out of, the implications are bullish with an objective of 25800. 25200 is important on the upside and as long as bears are unable to force the index below 24800, bulls clearly have the upper hand. Talks between China and the US are expected to conclude today so what happens there will be the next catalyst for the trend,” said Akshay Chinchalkar, Head of Research, Axis Securities.
Is it time to book profits?
According to VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, Nifty is likely to consolidate in the 24500 – 25500 range in the near-term. There are no short-term triggers to take the Nifty beyond the upper band. Some profit booking pulling the market slightly down is likely. But ample liquidity will ensure that dips will get bought, helping the market to consolidate.
Vijayakumar further said, ” From the global perspective, market participants will be keenly following the progress of trade talks between the U.S. and China. Even though there is optimism regarding a favourable outcome, it is unlikely to happen quickly.
Since the market has run up in the last two trading days and valuations have got stretched, some profit booking can be considered to hedge against unexpected developments.”
On the other hand, Ajit Mishra – SVP, Research, Religare Broking Ltd believes that the participants should exercise caution amid market rally. “ We maintain our bullish outlook and recommend a focus on selective stock picking during any intermediate consolidation or dip. At the same time, participants should exercise caution, especially in the small- and mid-cap segments, which are currently buoyed by strong domestic flows and sentiment. Emphasis should remain on themes and stocks where the risk-to-reward ratio continues to be favorable,” Mishra said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
