Informist, Monday, Sep 18, 2023
By Maitri Seth
MUMBAI – Benchmark equity indices are likely to start their day on a positive note on Wednesday, however, analysts anticipate that they will remain trapped in a range of 19900-20300 points for the next few sessions, until a breakout is seen. Market participants are positive on select automobile stocks and public sector banks for Wednesday.
Meanwhile, Indian equity markets will remain shut on Tuesday on account of Ganesh Chaturthi.
Today, the Nifty 50 closed 0.3% lower at 20133.30 points, while the Sensex ended 0.4% lower at 67596.84 points. Indices closed in the red today due to weak global cues and lack of major domestic triggers. Analysts also hinted at some profit-booking as the market has been “bullish” since the last few sessions. Metal stocks were the worst hit today, followed by mid- and small-cap stocks-led sectors such as real estate and media.
Analysts believe that the market witnessed sideways movement today due to lack of domestic triggers and weak global cues. However, the overall bias is positive, said Rajesh Bhosale, technical analyst at Angel Broking.
“People will likely start covering short positions only if Nifty (Nifty 50) goes above 20300 points,” said Jay Vora, senior technical and derivatives analyst at Indiacharts.com, indicating that markets might gain significantly if the Nifty 50 crosses 20300 levels. He added that today’s fall was a “breather” and not a correction.
“This week markets would take cues from their global peers as several central banks including US Fed would hold policy meetings”, said Siddharth Khemka, head of research at Motilal Oswal Financial Services Ltd. On the global front, the Federal Reserve’s monetary policy meeting for the month of September is due on Wednesday, while investors will also eye United Kingdom’s August consumer price index data, also due on Wednesday.
“Other than global headwinds, higher domestic index valuations after the recent upsurge is making investors nervous, which may lead to some more profit-taking in the near term”, said Shrikant Chouhan, head of research at Kotak Securities.
Among sectors, analysts are positive about public sector banks and automobile stocks, especially two-wheeler auto stocks such as Hero MotoCorp and TVS Motors Co. Further, market participants are also positive about the information technology space, and are bullish on Tech Mahindra and Tata Consultancy Services for Wednesday.
End
Edited by Vidhi Verma
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