In Wednesday morning trade, the BSE Sensex is down 249 points, trading at 69,301 points, with IT stocks facing selling pressure. Major IT stocks like Infosys and TCS are down more than 2 percent. Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher, noted that the Nifty is facing resistance near the 21,000 zone and witnessed some profit booking during the intraday session, dipping towards the 20,850 zone and closing in the red near 20,900 levels. With near-term support at 20,850, Parekh expects consolidation and a decisive breach above 21,000 levels for an uptrend with higher targets of 21,800-21,900. The support for the day is seen at 20,800, and resistance is seen at 21,050. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, mentioned that despite high valuations, the short-term market undercurrent is bullish due to economic growth, sustained buying by DIIs and retail investors, FPIs shifting from selling to buying, and favorable global cues. The markets are awaiting the Fed's message for a decisive turn. Despite India's CPI inflation rising to 5.55 percent in November (compared to 4.87 percent in October), it's lower than the expected 6 percent. The IIP growth of 11.7 percent in October indicates continued economic growth. The decline in Brent crude below $74 is strengthening India's macros. Leading banks, capital goods, cement, oil marketing companies, and the leading airline company are performing well.
Key Points:
1. BSE Sensex experiences a decline of 249 points in Wednesday morning trade, primarily attributed to selling pressure on IT stocks.
2. The current trading level for BSE Sensex is 69,301 points, with Infosys and TCS witnessing a decline of more than 2 percent.
3. Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher, notes that Nifty faces resistance near 21,000, leading to intraday profit booking, resulting in a dip to around 20,850. The day concludes with Nifty in the red near 20,900.
4. Nifty is expected to consolidate with near-term support at 20,850. A decisive breach above 21,000 is crucial for continuing the uptrend, targeting higher levels of 21,800-21,900. Major support lies near 20,550.
5. The support for the day is identified at 20,800, while resistance is observed at 21,050.
6. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, sees a bullish short-term market undercurrent despite high valuations.
7. Factors contributing to market resilience include growth momentum in the economy, sustained buying by DIIs and retail investors, a shift in FPI strategy from selling to buying, and favorable global cues.
8. The upcoming message from the Federal Reserve is considered crucial for setting the global market trend.
9. India's CPI inflation for November is higher at 5.55 percent, but below the market expectation of 6 percent. October's IIP growth at 11.7 percent indicates the continuation of economic growth momentum.
10. Strong performers in the market include leading banks, capital goods, cement, oil marketing companies, and a prominent airline company. Steadily declining Brent crude, now below $74, is strengthening India's macros.
(With Agency Inputs)
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