Indian stock markets today snapped a six-day rally on last hour profit-taking as investors locked in gains after the recent rally. The NSE Nifty 50 index ended 0.04% lower at 15,109.30, having hit a record high earlier in the session. The S&P BSE Sensex also closed 0.04% lower at 51,329, after hitting 51,835 at day’s high. Both indexes are still up nearly 11% so far this month.
Automakers Mahindra and Mahindra and Tata Motors, which had climbed 6.3% and 7.3% respectively on Monday, fell more than 3% each and were among the biggest drags on the Nifty 50.
Automobile dealers’ body FADA today said passenger vehicle (PV) retail sales in January witnessed a year-on-year decline of 4.46%.
India’s benchmark stock indexes have hit multiple all-time highs in recent sessions, as investors cheered last week’s growth-focused budget while strong foreign inflows into equities and solid corporate earnings also aided sentiment.
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Here is what analysts said on today’s market performance:
Deepak Jasani, Head of Retail Research, HDFC Securities
“Nifty 50 also fell 150 points from the highest point of the day and ended marginally in the negative for the day accompanied by a negative advance decline ratio. 15257, the high of Nifty, will now be a crucial level on the upside. The global markets have come under minor profit-taking on the seventh day of the rally. If this continues, we could see the Nifty correcting more towards 14913 and later 14753.”
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
“Today, again the market has managed to establish a new record high of 15257/51835, but due to profit booking it corrected sharply in the last hour of trade. Technically, the index has formed Hammer kind of candlestick pattern which clearly indicates indecisiveness between bulls and bears. For the next few trading session 15250/51800 would be the key resistance level, trading below the same we can expect intraday correction up to 15000-14950/51000-50500. On the flip side, if index succeeded to trade above 15250 /51800 then uptrend continuation rally likely to continue till 15335-15365/ 52200-52500.”
Ajit Mishra, VP – Research, Religare Broking Ltd
“We might see some consolidation in the index and it would be healthy. We thus advise using intermediate corrective moves to accumulate quality stocks on dips and avoid contrarian trades.”
Ruchit Jain (Senior Analyst – Technical and Derivatives, Angel Broking
“Nifty started the day marginally positive and crept higher to surpass 15250 level. However, we witnessed some profit booking in the last hour of the day due to which Nifty gave up its intraday gains and ended the day on a flat note. The Nifty has resistance in the range of 15250-15300 while the Banking index too is facing some resistance around 36500 mark since last three sessions. Thus, it is necessary to surpass these respective levels for a continuation of the up move. However, since we have seen a sharp run up post budget without any correction, some consolidation or a correction would be healthy to set up the next leg of upmove. Today’s low around 15060 is around the hourly ‘20 EMA’ which is an important short term support. In case the index breaches this, then some more correction upto 14870-14900 cannot be ruled out. On the flipside, a move above the mentioned range of 15250-15300 would mean a continuation of the trend. Although the broader trend continues to be positive, it would be prudent to book timely profit and look for buying opportunities in stocks again on dips. It is advisable to avoid aggressive positions and take a stock specific approach with a tab on the above mentioned levels.”
