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The Indian benchmark indices open on a positive note on Wednesday, December 20. The Nifty is up by 128.70 points or 0.6 per cent at 21,581.80 as of 9:36 am, while the BSE Sensex is up 470.19 points or 0.66 per cent at 71,907.38 as of 9:40 am.
According to Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the market is consolidating, but at higher levels. “The steady rise in the mother market US, which has helped the Dow set a new record high, is exhibiting the same trend. The fact that the fear gauge - VIX - is at a low level of 12, is an indicator of the underlying strength of the market,” Vijayakumar said.
Since valuations in the mid- and small-cap segments are excessive, chasing mid and small caps at these valuations is risky. “Going forward, large-caps are likely to outperform. Even if they don’t, safety is in large caps. Investors should give importance to safety in this time of optimism. Declining bond yields in the US means FIIs will continue buying Indian stocks. The New Year is likely to witness a fresh bout of FII buying. Large caps like RIL, which have not participated much in the rally, may see action,” the analyst said.
Vaishali Parekh, Vice-President - Technical Research, Prabhudas Lilladher Pvt., said the Nifty has been hovering near the 21,300–21,500 levels, witnessing strong support near the 21,300–21,280 levels and closing above the 21,400 zone, but has been unable to breach those support levels. “At the same time, 21,550 has been maintained as a good resistance zone as of now. The support for the day is seen at 21,300, while the resistance is seen at 21,600.”
Stocks that opened as top gainers on the NSE at 9:45 am are: LTIMindtree, TCS, Wipro, Tata Consumers, and Eicher Motors. Meanwhile, stocks such as Axis Bank, UPL, Sun Pharma, Tata Steel and Coal India were top losers.
The Varun Beverages stock surged by 11.98 per cent on the NSE, trading at ₹1,312.05 as of 9:51 am on Wednesday, after the company entered into an MoU with the Jharkhand Government to set up a manufacturing plant in Patratu, with an outlay of ₹450 crore. It has also announced acquiring 100 per cent stake in The Beverage Company (Proprietary) Ltd, South Africa, along with its wholly-owned subsidiaries.
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