Comments
Domestic markets are expected to open positive on Wednesday. SGX Nifty at 18,830 indicates a marginal gain for Sensex and Nifty, as Nifty futures on Tuesday on the NSE closed at 18,777.
Analysts expect the market to sustain the rally, thanks to global sentiment. The US stocks remain strong, on the expectation of a ‘Dovish’ stance from US Fed following the cooling down in inflation rate.
A cooling inflation report is fuelling this bull market as the Fed should have no problem skipping a rate hike on Wednesday, said Edward Moya, Senior Market Analyst, The Americas, OANDA. “Wall Street is becoming a little bit hopeful here that an FOMC June skip could eventually become a July pause. Inflation is mostly heading lower and some of the leading indicators (car wholesale prices, weakening consumer) support the argument that the disinflation process will continue,” he added.
US stocks advanced to their highest level in more than a year, with investors adding to a rally powered by shares of large tech companies, said Mitul Shah - Head of Research at Reliance Securities.
According to analysts, Indian markets will align with global movements in the short term, as there is no domestic trigger. With macros (IIP and inflation) surprising positively, analysts expect the rally to sustain, However, given the stiff valuation there is little headroom for the markets to go up, they further said.
Also read: May retail inflation, April factory output spring positive surprise
Om Mehra, Equity Research Analyst, Choice Broking, said: “The market undertone is bullish, and the major trend of the index is on the positive side. Hence any short-term corrections remain as a buying opportunity. However, minor corrections in the upcoming weeks cannot be ruled out.”
Nifty @ 19,000
Technical analysts expect the Nifty will hit 19,000 soon. “The immediate hurdle is seen at 18,770 levels, which once sustained, can push the index towards 19,000 levels. Comfortable writing was seen in 18,700 and 18,600 strike put options suggesting the dips are unlikely to be steep and any fall towards 18,600 can see fresh buying in Nifty index,” said Gaurav Bissa, VP - InCred Equities
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.