After The Bell: Sensex climbs 53k but closes flat amid profit-booking; what should investors do on Wednesday?

S&P BSE Sensex opened higher and hit a record high on June 22 tracking positive global cues, but failed to hold on to the momentum and closed with marginal gains.

The S&P BSE Sensex hit a fresh high above 53000 for the first time at 53,057 but momentum fizzled out in the second half of the session pushing the index lower. The Nifty50 also saw a cut of more than 100 points from the intraday high.

Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 14 points to 52,588 while the Nifty50 closed with gains of 26 points at 15,772.

"Markets opened strong on the back of global cues & the pick up in the pace of vaccination. Tuesday's Trade saw hectic activity in stocks pertaining to the unlock theme,” S Ranganathan, Head of Research at LKP securities said.

“The broader market too was buoyant as investors piled on to Paper stocks and Smaller Banks. Nearing Mount 53K, however, witnessed profit-taking across the board in afternoon trade,” he added.

Among sectors, buying was seen in capital goods, industrials, auto, and power indices while profit-taking was visible in realty, banks, energy, and FMCG stocks.

On the broader markets front – the S&P BSE Midcap index rose 0.3 percent while the S&P BSE Smallcap index gained 0.8 percent – outperforming the benchmark indices.

Here’s what experts suggest investors should do on June 23:

Expert: Chandan Taparia, Vice President | Analyst-Derivatives, Motilal Oswal Financial Services

Nifty50 formed a Bearish candle on the daily scale near its lifetime high zones which indicates that follow-up buying is required to commence the next leg of the rally.

Now, the index has to hold above 15750 zones to witness an up move towards 15900 and 16000 zones while on the downside support can be seen at 15600 and 15550 zones.

Expert: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

The markets got a wee bit nervous at the 15900 levels and corrected from there but the trend continues to remain positive.

With strong support at 15400, Nifty seems to be headed to 16000-16100. Dips can be utilized to accumulate long positions for higher targets.

Expert: Alok is the Founder of Weekend Investing

A market that is in upward momentum will have a reaction of buying each dip till such moves stop to make gains for those doing it.

A bigger correction has been called many times and certainly, it is due but it is impossible to pinpoint how and when.  With the kind of gains, we have seen, a 10-15% correction would be normal without breaking the back of the bull market.

Expert: Vinod Nair, Head of Research at Geojit Financial Services.

Falling COVID infection rate along with ramping up of vaccination in India, added colours to the broad market in hopes of faster economic recovery.

Volatility returned after main indices tested near all-time high levels, recurring weak closing of Asian & European markets, and feeble futures.

We are likely to end up in a short to medium-term correction because the overall environment for the equity market is still lucrative of a low-interest rate cycle and vigorous economy.

It is time to have a balanced portfolio of equity, bond, gold, and cash.

Expert: Gaurav Garg, Head of Research, CapitalVia Global Research Limited.

Looking at the technical structure, buying on dips may be a more relevant strategy than turning cautious, investors should accumulate quality large caps at any dip around 15,200-15,300.

Better than expected in earnings recovery along with higher liquidity might push the index higher. Market PE also drifting lower after earning recovery.

Expert: Gopal Kavalireddi, Head of Research, FYERS

On the downside, 15600 is the immediate support to keep an eye on. The 20-day moving average, which has held quite well for over a month, is currently placed at around 15580.

If the index breaks below the 15600-15580 zone, we could see a minor correction in the short term, which could extend towards 15200-15100. Such a correction could be healthy and would provide room for the restart of a new up move.

A correction of 5-10% would bode well for the current market, to give investors time to absorb all quarterly financials declared and understand the earnings growth scenario. With regards to Nifty, the key zone to watch out on the upside is 15800-16000 and, on the downside, it would be a level of 15600-15580.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.