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Sensex rose 0.2% to 49,584
Sensex rose 0.2% to 49,584

RIL, TCS help Sensex finish at all-time closing high but analysts stay cautious

  • Gains in heavyweights TCS (3%) and RIL (1%) helped markets to finish higher

Indian stock markets closed moderately higher today today after remaining sideways for most part of the session. Global markets were mostly higher today as investors waited for details of a US stimulus package announcement by President-elect Joe Bidden. The blue-chip NSE Nifty 50 index ended 0.2% higher at 14,595.60 and the benchmark S&P BSE Sensex also rose 0.2% to finish at all-time closing high of 49,584.16.

"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," said Deepak Jasani, Head of Retail Research, HDFC Securities

Infosys shares today ended 1.2% lower on profit-taking despite reporting strong Q3 earnings. Gains in heavyweights TCS (3%) and RIL (1%) helped markets to finish higher. Elsewhere, shares of Hindustan Aeronautics Ltd (HAL) jumped nearly 9.5%, a day after the government said it would buy 83 fighter aircraft from the company.

The Nifty bank index ended 0.17% lower at 32,519.

Here is what analysts said on today's market performance:

Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities

“It was a range-bound session for the market. Weekly expiration of options contracts and mixed activity in the global markets kept traders in the indecisive mode for the day. Following the candlestick indecisive pattern it would keep the market in a broader trading range between 14400/49100 and 14700/49900 levels. One needs to be stock specific until the market does not cross the upside barrier. Above 14,700/49900, the Nifty/Sensex would reach the 15000/50500 levels. The Bank-Nifty also survived well above the psychological barrier point of 32500, which is positive for it and could reach 33200 in the near term."

Ajit Mishra, VP - Research, Religare Broking Ltd

"We may see further consolidation in the index ahead and it would be healthy for markets. The recent rise in volatility on the stock-specific front is on expected lines and we expect this trend to continue during the earnings season. Participants should maintain extra caution in the selection of stocks now and focus more on risk management."

Vinod Nair, Head of Research at Geojit Financial services

"Despite better than expected results of Infosys and Wipro, IT sector witnessed selling in its opening trade. However, the sector bounced back soon which led to a recovery in the market post it's weak opening. The positive opening seen in European markets also helped in raising market optimism. Positive economic data along with improving quarterly outlook is helping the Indian market to attract more foreign funds which will keep the market liquidity high even in these high valuations."

Ashis Biswas, Head of Technical Research at CapitalVia Global Research

"The market witnessed some swift recovery after the initial fall at the start. Market continues to show resilience to stay above 14600. A significant breakout above the levels of 14680 could result in improvement of market breadth and the market can rally till the levels of 14870. We retain our cautious stance and advise the traders to refrain from building a fresh buying position, until we see further improvement and breakout above 14680."

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