Markets end at record highs; what should investors do on Thursday?

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Domestic equity benchmarks ended Wednesday’s volatile session at record closing highs. The Sensex ended 193 points higher at 53,054 for the first time, while the Nifty 50 rose 61 points to settle at 15,879. Meanwhile broader markets supported the rally, with the midcap and smallcap indices rising over half a percent each.

Among sectors, Nifty Metal rose the highest, garnering gains worth 2 percent. IT was followed by Nifty Realty, surging nearly 2 percent. Nifty Financials, FMCG, IT, Pharma also closed the day in the green. Nifty Media and Auto indices, however, ended the day in the red.

Tata Steel, JSW Steel, Bajaj Finserv, Hindalco and UPL were among the top gainers on the Nifty. Top losers were Titan Company, ONGC, Maruti Suzuki, SBI Life Insurance and Shree Cements.

On the IPO front, the issue of Clean Science and Technology was subscribed 1.7x on Day 1. The offering of GR Infraprojects was subscribed 2.28x  on the first day of bidding.

All eyes tomorrow will be on TCS as it kickstarts Q1 earnings report. Experts and brokerage houses bet on robust revenue growth with slight moderation in margins.

Here’s how experts see markets trading on Thursday

Ajit Mishra, VP – Research, Religare Broking

In a highly volatile session, markets ended with gains of nearly half a percent. In the near term, Q1FY22 earnings is likely to provide some direction to the markets, in absence of any major triggers. So, we remain cautiously optimistic and believe any correction at this juncture should be considered healthy as investors will get the opportunity to invest in quality counters on dips. Meanwhile, investors will keep a close watch on global cues.

Manish Hathiramani, Technical Analyst, Deen Dayal Investments

The markets managed to close in the green but were unable to cross 15,900 on a closing basis. If we can manage to do that, we should be heading to 16,100. Good support lies at 15,400 and as long as that holds, we are in bullish territory and corrective waves can be strategically utilized to buy this market.

Shrikant Chouhan, EVP, Equity Technical Research, Kotak Securities

After muted opening, Nifty made an intraday low of 15,779.70 and reversed sharply. But post sharp reversal Nifty remained in the range of 15,800-15,850 and eventually in the last hour of the trade it surpassed the intraday hurdle of 15,850 which is broadly positive for the market. We are of the view that the larger market structure is still in to the positive and likely to continue in the near future if the market succeeds to trade above 15,850.