Below is the Views On Indian equity markets opened positive but remained consolidative by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.
“Indian equity markets witnessed a range-bound session, and ended flat. Nifty50 closed 15 points higher (+0.1%) at 11464, while Sensex finished just 14 points higher at 38,855. The broader market too closed in green with Nifty Midcap 100/Nifty Smallcap 100 up +0.7%/+0.3%. India VIX was down 2.7% to 20.7 levels. Majority of the sectors ended in green with IT and Realty being the biggest gainers, up 1.3% each. Media and energy sectors were marginal losers on the other hand.
The global cues were weak following sharp overnight fall in US technology stocks, doubts over additional monetary stimulus and adverse news-flows of COVID-19 vaccine trials. However, the Indian markets remained stable and ended with positive bias as the progress was made to subside the border tensions. India and China agreed on a five-point roadmap including quick disengagement of troops and avoiding any action that could escalate tensions.
Going ahead, the market is likely to consolidate in near term with positive bias as the global cues have turned weak and even FIIs have turned sellers. Technically, Nifty formed a small bodied candle on daily scale while Bullish Candle on weekly scale which suggests declines are being bought. Now till Nifty holds above 11300, it can witness an up move towards 11600 while support exists at 11200. Investors would track developments over India-China border issues, news flows around Covid vaccine trials and global cues. Any weakness in the market should be looked as a buying opportunity to add quality stocks in the portfolio as the overall long term market trend remains positive.“
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