Markets snap the two day rally and close lower but Nifty holds 15,000. Here's what investors should do
Experts say markets are seeing rotational buying across the sectors and are advising investors to focus on stock selection
Indian equity benchmark indices ended lower on Wednesday after a one-way rally over the past two days.
Sensex fell 290 points or 0.58% to close at 49,902, and the Nifty dropped 77 points or 0.52% to end at 15,030.20. Nifty Bank falls the most amongst frontline indices, down 0.7% to 33,685.
Broader markets closed as the S&P BSE MidCap and SmallCap indices ended 0.53 per cent and 0.35 per cent higher, respectively.
Among sectors, Nifty Financial Services, Nifty Metal, Nifty Auto and Nifty Private Bank fell the most, while, gains were seen in pharma, realty, PSU Banks and media indices.
Tata Motors, HDFC, JSW Steel, M&M and Bajaj Finserv were among the top losers on the Nifty. Gainers included Coal India, Cipla, Sun Pharma, UPL and IOC closed 1% higher after reporting better-than-expected earnings.
Shares of Birla Corporation, on the other hand, traded higher for the eighth straight day and hit a record high after it rallied 14% on strong set of numbers for Q4FY21.
More than 300 stocks, including CSB Bank, Gland Pharma and Adani Enterprises, hit a fresh 52-week high on the BSE.
On the other hand, Shares of Tata Motors dipped 6% on account of profit booking even as the firm reported a strong operational performance for the quarter. Ujjivan Small Finance Bank tumbled 8.1% after the lender’s asset quality worsened in the March quarter.
Here’s how experts see Markets trading on Thursday
Vinod Nair, Head of Research at Geojit Financial Services:
The recent sharp rally has triggered some caution for the near-term. The global market was tentative ahead of the announcement of Fed minutes, this was mirrored in the domestic market, though it is not expected to hawkish. Optimism gained from declining Covid cases has resisted a sharp correction in domestic market.
Ajit Mishra, VP – Research, Religare Broking
Markets took a breather after the recent surge and lost nearly half a percent. We feel it’s a healthy pause and expects the prevailing up move to continue. Meanwhile, participants should keep a close eye on the global cues and COVID-related updates. We’ve started seeing rotational buying across the sectors so the focus should be on sector and stock selection.
Manish Shah, Founder, www.Niftytriggers.com
Nifty closed the day marginally lower. It was a narrow ranged day after two days of solid rally. The support for Nifty is within 14,950-15,000 area and any dips to this zone should provide a buying opportunity. Nifty should not break below the support at 14,750 and some leeway could be given to this number.
On the lower time frame charts a break above 15,150 could signal a continuation of the up move. Nifty offers one of the best buying opportunities in the last three months and we should see a rally to 15,450-15,500 before the end of the current expiry. Punts on the long side would prove fruitful.