Nifty again fails at the 14,200 hurdle. Analysts maintain buy-on-dips strategy2 min read . Updated: 06 Jan 2021, 05:04 PM IST
- RIL and ITC today fell over 2.5% each
- HCL Tech, Bajaj Finance and Axis Bank were among the other top losers
Indian stock markets fell today, ending a 10-day winning streak, amid selling pressure in market heavyweights Reliance Industries and ITC. The blue-chip NSE Nifty 50 index closed 0.38% lower at 14,146, after hitting 14,241 at day's high. For the second day, the Nifty rose above 14,200 levels on an intraday basis but closed below it. The other benchmark index S&P BSE Sensex ended down 0.54% at 48,174.06.
Global stocks fell on a possible Democrat triumph in Senate runoffs in the US battleground state of Georgia, as that would pave the way for President-elect Joe Biden to push through higher corporate taxes and greater regulation.
Reliance Industries fell 2.6%, while consumer giant ITC shed 2.9% and Bajaj Finance declined 1.7%. Separately, a private survey on Wednesday showed growth in India's dominant services industry continued to lose momentum in December.
The broader indices too traded mixed wherein BSE midcap index ended higher by 0.3% while smallcap ended with losses of 0.15%.
Here is what analysts said on today's market performance:
Deepak Jasani, Head of Retail Research, HDFC Securities
"Nifty has corrected after 10 days of rise. However the fact that it did not close at its intra day low is a consolation. The outcome of the US elections could have an impact on the US markets and then on Indian markets. As long as the 13985 level on the Nifty is not breached, this remains a buy-on-dips market."
Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities
“Nifty trades around the 14100; midcap stocks have outperformed in the recent past and select stocks continue to remain in momentum. We believe within the structural up-move, interim correction phase is expected to play out. Expect volatility to increase significantly in the near term. There has been a shift in positions/interest from frontline stocks to the midcap space which usually in followed by a correction. FMCG stocks look attractive while Metals and Banking are expected to witness volatility. Traders are advised to keep leverage in control while investors can wait for a meaningful dip to buy aggressively."
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
"14250 worked as a stiff resistance and we did see a sharp fall in the market. Although we did rebound from the lows, I would advise caution as sharp movements cannot be ruled out. Hence strict stops should be maintained and traders should initiate long positions only on dips or corrections."