Equities extended its winning streak to a second day as investors remained upbeat about realty, oil& gas and IT stocks. The National Stock Exchange’s Nifty gained 24 points to close at 5,556 and the 30-share Sensex strengthened 76 points to end at 18,495.
The brokerage bunch appear to share mixed views on the road ahead for the market. Amisha Vora, joint managing director of Prabhudas Lilladher believes that India is likely to outperform in the long haul overlooking the recent signs of cracks on the back of slowdown in growth.
Meanwhile, he asserts, “The heartening fact is that investors are now aware of the concerns (government inaction to RBI's efforts of taming inflation, slowdown in growth, etc) looming over the market. These negativities may continue to linger on buyer sentiments in the short-run. Hence, the market is expected to remain directionless and bottom out by the end of first quarter.”
The Nifty rose to as high as 5,570 a low of 5,508 in today's trade. It has managed to hold 5,500 levels, but volumes remain a concern. So what are the zones to watch out for on the Nifty? Vora explains that the 50-scrip index may fall to 5,200-5,300 levels if global equities witness a sharp decline.
Analysts are shrugging off the upturn seen in Tuesday's trade. Sandy Jadeja, chief market strategist-head of global training of ODL Securities warns that the key benchmark indices (Nifty and theSensex) are likely to be gripped by bears as monthly chart patterns indicate formation of a 'double top'.
“According to the daily charts, the indices are trading below their 100-period moving averages,” Jadeja stated, further explaining that on the upside, Nifty will face stiff resistance around 5,800-5,900 levels, however, once the wide-based 50-share barometer breaks its support levels of 5,300-5,280, a panic sell-off may take the bourse to 5,100-mark. “So, investors need to keep a close watch on these levels in the near-term,” Jadeja cautioned.
On the other hand, Manoj Murlidharan Vayalar, associate vice president-derivatives, IIFL argues that the Nifty might rise another 150 points on the upside to 5,700-5,750 levels in the short-term. “However, a drift downward may the take the index to 5,200-5,500 levels,” Vayalar added.
Ahead of the RBI mid-quarter review on June 16, Sudip Bandyopadhyay, managing director & CEO of Destimoney Securities concludes that central bank's policy call on June 16 will influence market movement in the near-term.
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