Nifty again fails at 14600-14650 hurdle. What analysts say on today's fall1 min read . Updated: 15 Jan 2021, 12:45 PM IST
- Among the Sensex stocks, HDFC fell over 1% while Kotak Bank. HCL Tech and Tech Mahindra declined between 1.5% and 2%
Indian stock markets fell today tracking weak Asian markets despite announcement of $1.9 trillion stimulus package proposal from US President elect Joe Biden. Analysts say that the news was already factored in by the markets with equities running up days ahead of the announcement. The Sensex was down about 300 points while Nifty managed to hold on 14,500 levels after hitting 14,617 at day's high.
"The resistance patch of 14600-14650 has been very effective. The markets are finding it difficult to move up," said Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments. "We need to get past 14700 in order to resume this uptrend. If the market manages to cross that level, the index should go up to levels closer to 15000. On the flip side, if we break the support of 14350, we can drop to 14000."
Among the Sensex stocks, HDFC fell over 1% while Kotak Bank. HCL Tech and Tech Mahindra declined between 1.5% and 2%. Bharti Airtel jumped 4% after the MSCI Global Standard Indexes said on Thursday it would review the weight of the stock in February.
VK Vijayakumar, chief investment strategist at Geojit Financial Services, remains cautious on markets. "Most indicators of market valuations are much higher than long-term averages. Now, an important indicator - market cap to GDP- has crossed 100% indicating overvaluation. However, economic indicators are suggesting faster than expected recovery in the economy. Present valuations can be justified only if the recovery sustains and gathers momentum. In the short run expectations regarding the budget are likely to influence market movements. Retail investors buying low-grade stocks is an extremely risky investment," he said.
In a note, HDFC Securities said: Nifty has entered a consolidation phase. However it still does not end at or near the intra day low. 14432-14653 seems to be the range beyond which the trend could accelerate in that direction."