A positive surprise is the continuous flow of excellent corporate results, says the chief investment strategist at Geojit Financial Services
This will take away some concerns regarding valuations, he added
Indian shares were lower today, tracking weak Asian markets after major indexes hit record highs in the previous session. The blue-chip NSE Nifty 50 index fell 0.7% to 14,491 while Senex was down about 350 points at 49,278 levels.
"The market is likely to move into a consolidation phase for the short-term since the big news regarding the US presidency is behind us and the milestone of 50000 Sensex was reached, says VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Reliance Industries was down 1.4% ahead of its December quarter earnings. The stock had gained more than 8% this week as of Thursday.
"The Nifty has become slightly nervous after facing resistance at 14750. While the trend still remains positive, we need to approach the index strategically. On the upside, we can go up to 14800-14900. On the downside, we have good support at 14300. Hence traders can initiate long positions with a target of 14800 and a stop below 14300," said Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.
Shares of biopharmaceutical firm Biocon Ltd fell 9% after an 18% drop in quarterly profits. Elsewhere, shares of Bajaj Auto rose 10%, to hit a record high, after an over 23% surge in December quarter profits.
Asian shares eased from record highs, as investors took some profits after a recent rally that was driven by hopes of a massive U.S. economic stimulus plan by incoming President Joe Biden.
"This has been a 'buy on dips' market for months now. Sustained FII buying has been the main catalyst behind this strategy. Of late, better than expected corporate results have been supporting this strategy. Nothing warrants a change in this strategy now," VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
"A positive surprise is the continuous flow of excellent corporate results. This will take away some concerns regarding valuations. Sustained FII inflows can deter the bears from going short," he added. (With Agency Inputs)