While about a 6 per cent fall from the peak in Nifty has made the market healthy, the valuations continue to be high. Therefore, FIIs may continue to sell on every rise in the market. The market is likely to consolidate with sideways movements in the short run, said an analyst.
“The rise in oil prices added to concerns that inflation will continue to rise, putting further pressure on banks to scale back the easy money policies. Positive opening for domestic markets appears to have halted a short-term downtrend but it can’t be said that it is completely out of the woods,” said Sageraj Bariya, Vice President – Institutional Sales, East India Securities.
How are bluechips doing
After opening in the green, benchmark indices build on the gains. At 9.38 am, BSE flagship Sensex was up 171 points or 0.29 per cent to 58,836. NSE benchmark Nifty advanced 56 points or 0.32 per cent to 17,560.
“On the technical front, the key resistance levels for Nifty50 are Rs 17,650 followed by 17,750 and on the downside 17,300 followed by 17,100 can act as strong support. Key Resistance for Bank Nifty is Rs 37,600 and support is Rs 36,800,” said Mohit Nigam, Head – PMS, Hem Securities.
In the 50-share pack Nifty, ONGC was the biggest gainer, up 3.58 per cent. Bharti Airtel, SBi Life Insurance, Adani Ports, BPCL, Indian Oil, HDFC Life Insurance and NTPC were among other gainers.
Bajaj Finserv was the top loser in the pack, down 0.82 per cent. Hindalco Industries, Infosys, Maruti Suzuki, Tech Mahindra, Asian Paints and Divi’s Labs were among those that traded in the red.
FACTORS DRIVING MARKETS
Oil prices cool down: Oil prices fell on Wednesday as the US-led coordinated release of stocks from strategic reserves eased concerns over tightness in global supply, while investors took profits from the previous day’s rally ahead of the US Thanksgiving holiday.
Dollar on a high: The dollar index was steady and remained close to its highest in 16 months. A higher dollar generally means more outflow from India.
Broader markets
Broader market indices were trading higher, outperforming their headline peers in morning trade. Nifty Smallcap was up 1.21 per cent while Nifty Midcap advanced 0.55 per cent. The broadest index on NSE, Nifty 500 was up 0.37 per cent.
Oil India, Tata Power, JSW Energy, Bank of Maharashtra, Trident and Carborundum Universal were gainers from the space while PVR, Sequent Scientific, CAMS, Emami, Bharat Electronics and Coforge were under selling pressure.
Global markets
Asian markets opened lower on Wednesday after a mixed close on Wall Street, with investors sceptical about a US-led plan for a coordinated release by several countries of strategic oil reserves. MSCI’s index of Asia-Pacific shares outside Japan fell 0.24 per cent.
Japan’s Nikkei declined 1.09 per cent. South Korea’s Kospi fell 0.40 per cent. Australia’s ASX 200 dropped 0.80 per cent. China’s Shanghai edged 0.08 per cent lower. Hong Kong’s Hang Seng fell 0.20 per cent.
