Nifty looks toppish but could extend gains if 14,500 holds: Manish Hathiramani1 min read . Updated: 12 Jan 2021, 12:34 PM IST
- On an intra-day basis, if Nifty e can keep above 14500, we should be able to achieve 14,600 sooner than later, he said
Indian shares were flat today in noon trade with Sensex and Nifty trading marginally higher. Gains in metals and energy stocks were outweighed by losses in FMCG and IT stocks. The blue-chip NSE Nifty 50 index was trading at 14,514 while Sensex flat at 49,285.
"The markets are feeling toppish at 14500. While we feel the Nifty can go up to 14600, traders should exercise caution and book profits at regular intervals. We have good support at 14200-14250 levels. On an intra-day basis, if we can keep above 14500, we should be able to achieve 14,600 sooner than later," said Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.
The Nifty bank index recovered from early losses and was trading 0.2% higher, with SBI and HDFC Bank trading about 1% higher.
The Reserve Bank of India expects banks’ bad-loan ratios to almost double this year and warned that soaring markets and a weakened economy threaten financial stability. The Reserve Bank of India forecasts non-performing assets will rise to 13.5% of total advances by the end of September from 7.5% a year ago, according to its semiannual Financial Stability Report published on Monday.
"Two important developments are: bond yields rising in the US and the dollar index again rising above 90. Both these are negatives from the emerging market perspective, but FII inflows continue to be robust, pushing markets higher. Meanwhile the RBI in its Financial Stability Report expressed concern about high potential NPAs of the banking system. PSU banks are likely to be under strain. The well capitalized large private sector banks are strong and are likely to gain from the woes of the PSU banks," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Tata Motors rose 10%, buoyed by a double-digit increase in China sales of its luxury car unit Jaguar Land Rover (JLR).
Indian investors now await retail inflation data due later in the day, with a Reuters poll predicting it fell sharply last month, landing within the Reserve Bank of India's target range. (With Agency Inputs)