Sensex scales 50,000, but ends lower. What analysts say on today's market move2 min read . Updated: 21 Jan 2021, 05:11 PM IST
- Sensex hit a record high of 50,184 in today's session
- Reliance Industries shares rose 2%
It was a historic day for Indian market with benchmark Sensex surpassing the 50,000 level for the first time. But the market could not hold on to gains and ended lower on profit-taking. The Sensex closed down 0.34% at 49,624.76 after touching a record high of 50,184 earlier in the session. The broader Nifty finished 0.37% lower at 14,590.
“Post the strong upmove of the last two sessions, we began the weekly expiry day on a cheerful note tad above 14700 mark amid positive global cues. As the day progressed, the benchmarked consolidated for initial few hours and then all of a sudden we witnessed a sharp sell-off to drag index towards 14500 mark. Eventually, due to some recovery in last few minutes index concluded the day tad below 14600 mark," says Sneha Seth of Angel Broking.
"Considering today’s development, we believe 14650-14750 to now act as a hurdle immediate support is placed around 14500 mark," she said.
Global equity benchmarks hit record highs today, as investors bet major stimulus from new U.S. President Joe Biden. Reliance Industries shares rose 2% after Indian stock exchanges gave the go-ahead for a $3.4 billion deal with Future Group. Tata Motors shares rose 5.7%, gaining for a third straight day.
ONGC was the top loser in the Sensex pack, shedding 4%, followed by Bharti Airtel, SBI, IndusInd Bank, NTPC, Sun Pharma and ITC.
Here is what said on today's market performance:
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services
"Sensex@50000 is great news not only for the market and investors but for the economy also. If the recovery in growth and corporate earnings, currently underway in India, gathers momentum, the markets may further surprise on the upside. But it is important to appreciate that the market is overvalued from the short-term perspective. At high levels, the market is vulnerable to a correction. Investors can utilize the current euphoria to get rid of low-grade stocks from the portfolio."
Deepak Jasani, Head of Retail Research, HDFC Securities
"Indian equity benchmark indices failed to hold on to higher intraday levels. Volumes on the NSE were up again after a few days of soft volumes. Nifty has shown signs of profit taking after such a rise. Technically, it has formed a Dark Cloud Cover on daily charts, showing possibility of follow on selling. The steepness of selling in the afternoon suggests that the Nifty could keep running into resistance/profit taking over the next few sessions."
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
"We witnessed nervousness around the 14750 levels and the Nifty erased all its gains to close in the red. However, the trend continues to remain positive and we still have a pending target of 14800-14900. Since the support of 14300 continues to hold, a favourable risk to reward trade can be initiated with a target of 14800 and a stop of closing below 14300."