Below is the Views On Markets surrendered yesterday’s gains by Mr. Ajit Mishra, VP - Research, Religare Broking Ltd
Markets surrendered yesterday’s gains and settled closer to the day’s low following weak global cues. The US Fed in its policy meet raised concern over the economic recovery which triggered a weak start in our market. Though the benchmark tried to recover multiple times during the day, profit-taking on every rise not only capped the upside but also pushed the index lower. Amid all, the Nifty index finally ended the session down by 0.8% at 11,516 levels. The broader markets too ended in the red with losses in the range of 0.2-0.5%. Barring IT, all the sectoral indices ended with negative bias wherein realty, banking and capital goods were the top losers.
We reiterate our view that a directional move in the markets seems difficult unless we see alignment between the Nifty and banking index. Meanwhile, traders should maintain their focus on the sectors which are attracting buying interest and plan their trades accordingly. IT and pharma are currently leading the pack and likely to continue with the upward bias. On the flip side, apart from the banking index, we may see profit-taking in select metal and auto names ahead.
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