V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, suggests that despite a bullish undertone, the market is poised for consolidation in the short term. The anticipated upward movements may encounter profit booking from Domestic Institutional Investors (DIIs) and individual investors, particularly those sitting on substantial profits.
Vijayakumar notes that any market dips are likely to be seized by Foreign Institutional Investors (FIIs) who have consistently demonstrated themselves as committed buyers. He points to the ongoing decrease in US bond yields, with the 10-year yield currently falling below 4.20 per cent, as a factor that will contribute to sustained FII buying.
On the technical side, Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher, observes that the Nifty is persistently advancing, achieving new record highs and surpassing the 20,850 zone. This upward trend is fueled by leading stocks such as ICICI Bank, M&M, HDFC Bank, and RIL, which could further propel the index to unprecedented levels.
Parekh highlights that the Nifty has witnessed a significant gain of nearly 11 per cent in the current swing, indicating further upside potential with the 21,000 level on the horizon in the coming days. She identifies the support for the day at 20,700, while resistance is expected at 21,000.
Meanwhile, on Wednesday, the BSE Sensex shows a positive movement, gaining 281 points to reach 69,577. Notably, Adani Group stocks continue their upward surge, with Adani Total Gas soaring by 18 per cent, Adani Green rising by 13 per cent, and Adani Energy experiencing a 12 per cent increase.
(With Agency Inputs)
Read also| 2023 Sees Small and Midcaps Outshining Nifty Performance
