Analysts suggest buy-on-dips as Nifty takes a breather. Key levels to watch now
Premium- Losses in banking stocks were offset by gains in IT and metal stocks
Home >Markets >Stock Markets >Analysts suggest buy-on-dips as Nifty takes a breather. Key levels to watch now
PremiumIndian markets ended almost on a flat note for the second successive session, taking a breather after the recent surge. Benchmark indices Sensex and Nifty initially opened higher but faces profit-taking at higher levels. The Sensex closed 14.37 points lower at 50,637 while broader NSE Nifty inched up 10.75 points to 15,208.
Losses in banking stocks were offset by gains in IT and metal stocks. The Nifty Bank Index ended 1.34% lower, respectively with HDFC Bank Ltd and Axis Bank Ltd among the top drags. The Nifty IT Index ended 0.96% higher and the Nifty metal index closed up 0.61%.
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The broader markets also ended on a subdued note. Broader BSE midcap index fell 0.31%, while the smallcap gauge rose 0.26%.
The rupee strengthened by 19 paise to end at 72.77 against the US dollar on Tuesday, tracking weakness in the American currency in the overseas market.
Here is what analysts said on today's market performance:
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
“In a volatile trading session, markets failed to hold on to its early gains and ended on a mixed note. This means that the expiry pressure is higher in the market. Technology and FMCG stocks were the strengths of the market today, else the market would have closed in negative territory. The Nifty has made a higher bottom at 15163 and rebounded sharply to close above the previous day's closing. It looks like the market is preparing to cross the all-time highest level, which is at 15431. The basic trend of the market is bullish and our strategy should be to buy on dips or at major supports. The 15125 and 15050 levels should be major supports. On the higher side, 15330 and 15430 levels would be major obstacles. On Wednesday, the focus should be on auto, pharmaceuticals and financials."
Ajit Mishra, VP - Research, Religare Broking Ltd and Thematic Report by Religare Broking
"In absence of any major event, global cues will continue to dictate the market trend in near future. Besides, any news of unlocking by the state governments will also be closely watched as we’re seeing a sustained decline in new COVID cases. We feel the choppiness may continue especially in the F&O stocks ahead of the upcoming monthly expiry of May month contracts. Traders should align their positions accordingly and continue with the “buy on dips" approach."
Deepak Jasani, Head of Retail Research, HDFC Securities
"Volumes on the NSE were a little short of recent averages as participants did not want to carry forward a lot of positions ahead of the F&O expiry on May 27. Nifty has again run into resistance closer to 15300 levels. Reports of a fresh stimulus package in India have raised hopes of an economic turnaround soon. 15137-15294 will be the trading band for the Nifty in the near term."
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
"15300 has posed as a resistance today. If we can get past that, we will achieve 15550-15600. We have good support at 14900-15000 and till we hold that level, we are in bullish territory and can utilize any correction to accumulate long positions."
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