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The market opened on a negative note on Monday, with Nifty down by 22.30 pts or 0.10 per cent at 21,434.35 and BSE Sensex down by 126.18 points or 0.18 per cent, at 71,350.56 as of 9:50 am.
Commenting on Nifty outlook, Anand James, Chief Market Strategist at Geojit Financial Services, said, “Having breached the 21,430 objective on Friday, sustainability of the ongoing uptrend could be put to the test this week. A move past 21,600/660 may be difficult in the present run, but a collapse may not unfold right away, with 21,360 offering the first downside support.”
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “There are two significant factors driving the ongoing strong rally in the market. One, FIIs who have made a ‘u’ turn in their strategy, have turned big buyers, having invested around Rs 20,000 crore, including bulk purchase, in the last two weeks. Second, the rally is driven by segments such as banking and IT, which were under-performers for quite some time.”
“During the last two weeks, while the Nifty has gained by 6 per cent, Bank Nifty had moved up by 7.4 per cent and Nifty IT by around 11 per cent. Since there is huge delivery-based buying in these segments, they have the potential to remain resilient. Global and domestic factors, except valuations, are favourable for the market. It makes sense to remain invested, particularly in large caps. Some profit-booking can be considered in the mid and small-caps, where valuations are very high,” Vijaykumar added.
ICRA Analytics Daily Dossier report has stated that the markets witnessed an all-round buy across the sectors led by index heavyweight IT stocks, which rose sharply following dovish commentary from the US central bank. Metal stocks also added to the gains, aided by a jump in global metal prices, it added.
Stocks that gained on the BSE as of 9:58 am were: Bajaj Hindustan; Rajesh Expo; Thermax; Dhampur Sugar Mills; and Renuka. Meanwhile, stocks such as Solar Industries; Garfibres; Edelweiss; Union Bank and Kiri Industries were the top losers.
Major gainers on the NSE at 10:04 am were Bajaj Auto, Eicher Motors, Sun Pharma, Dr Reddy’s Laboratories, and Divi’s Laboratories. Meanwhile, top losers were Coal India, ICICI Bank, ITC, IndusInd, and Power Grid.
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