Indian benchmark indices had been holding on to their positive aspects on Friday, following a aid rally within the US markets in a single day and positive aspects in Asian shares. The BSE Sensex rose 614 factors or 0.9% to the touch intraday excessive of 56,255, whereas the NSE Nifty 50 climbed 165 factors to 16,793. Sectorally, Nifty IT soared over 2 per cent following a powerful rally in US tech shares in a single day. Nifty Bank, PSBs, and Pharma had been different notable gainers. “Short term investors who are under invested in equities can top up their equity holdings to ride this upmove,” stated Deepak Jasani, Head of Retail Research, HDFC Securities.
Where are markets headed?
“Currently, the market is eyeing the central bank’s guidance on the interest rate trajectory. Both the RBI and FED meeting is scheduled in June and we have to wait and watch to see how central banks influence the path of interest rates trajectory to maintain growth and inflation dynamics. Keeping these developments in view, we expect the market performance to remain range-bound in the near term, and a clear trend is likely to emerge only if volatility stays at lower levels for a longer time,” in line with Neeraj Chadawar, Head – Quantitative Equity Research, Axis Securities.
“Yesterday, global markets witnessed a strong buying in heavyweight scrips and Indian markets are tracking the path. We believe that the corporate earnings season has ended on a positive note and therefore if we sustain above 16,700, a major hurdle for Nifty50, then we can see a further rally upto 17,000-17,200. The major support for the market is around 16,200-16,300,” stated Mohit Nigam, Head – PMS, Hem Securities.
What ought to buyers do?
Investors ought to give attention to asset allocation and use this volatility to construct long-term positions in high quality corporations, the place the earnings visibility is excessive,” stated Neeraj Chadawar, Head – Quantitative Equity Research, Axis Securities
Hold positions, anticipate dips to purchase: Investors ought to maintain positions for 17,000 ranges. And if ranges are attained, buyers can e book some earnings and anticipate corrections for making a brand new place at decrease ranges, stated Mohit Nigam.
Stay invested in high quality shares: Santosh Meena, Head of Research, Swastika Investmart, stated, “There are still some uncertainties about global markets but there are some pockets that may continue to outperform. Investors are advised to stay invested in quality stocks while the current rally is an opportunity to exit stocks that have fundamental concerns. We are bullish on corporate facing banks, capital goods, infra, and housing sector.”
Deploy money in valued shares: Choppy motion within the broader market is anticipated for subsequent couple of weeks, one can selectively deploy the money in valued shares, stated Akhilesh Jat, Category Manager – Equity Research.
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