1 min read.Updated: 27 Jul 2021, 11:37 AM ISTLivemint
Nifty update: Until the index goes past 15900 on the upside or break 15400 on the downside, it will be far from witnessing a definite trend
Indian stock markets edged higher today bfailed to extend gains in noon trade, amid selling pressure at higher levels. Nifty was trading 0.2% higher at 15,860 after rising to 15,881 at day's high. Sensex had also pared early gains and trade just 50 points higher. Nifty has been stuck in the 15600 to 15900 range in over a month, testing the patience of investors.
"The Nifty continues to be spiritless in its momentum; the range bound movement still persists! Until we do not get past 15900 on the upside or break 15400 on the downside, we will be far from witnessing a definite trend," says Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.
"While the propensity remains on the upside, the test of patience is challenging. A buy on dips can be looked at a possible trading strategy," he said.
Among the Sensex stocks, Tata Steel, SBI and Bajaj Finance were up around 2% while Dr Reddy's, Axis Bank and Kotak Bank were among the laggards.
Axis Bank's June-quarter consolidated net profit more than doubled, although its asset quality deteriorated. Elsewhere, Equitas Holdings surged 8% after its board of directors and shareholders approved the merger of unit Equitas Small Finance Bank with the company.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, expects 15600 - 15900 Nifty range to hold for some more time since FIIs have again turned aggressive sellers ( ₹2377 crore in cash market yesterday) at around 15900 levels.
"Even though DIIs are consistently buying ( ₹1551 crore yesterday), they are being overwhelmed by FII selling which has touched ₹14755 crore in July so far. Nifty is unlikely to decisively break above 15900 until FII selling weakens substantially," he added.
The broader markets outperformed with BSE midcap index up 0.3% and smallcap 0.9%.
Vijayakumar of Geojit sounded a note of caution on the rally in broader markets.
"Since money is continuously flowing into domestic equity mutual funds, the fund managers don't have any option but to buy even if valuations are high. The mid-small-cap segment is witnessing high volatility in response to results since the institutional activity is low in this segment. The newbie retail investors are now focused on this segment. But this segment can correct hugely when the market turns bearish and, therefore, investors have to be cautious."
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