The stock market opened on a positive
note, with indices maintaining their ascendant momentum, signalling a bullish
trend.
Bulls have taken firm grip, and despite
potential challenges, the Nifty’s momentum remains strong.
The Sensex opened 294.06 points higher
at 69,584.29, while the Nifty opened 78.95 points up at 20,934.65. Among the
Nifty companies, 33 witnessed advances, while 17 faced declines.
In the Nifty firm, LTIMindtree, Wipro,
UPL, Tech Mahindra, and ITC emerged as the top gainers, showcasing the strength
of particular sectors. Conversely, Bajaj Auto, Eicher Motors, ICICI Bank,
Hindalco, and Hero Motocorp faced declines in the early market hours.
Profit Idea founder and managing director
Varun Aggarwal said, “Bulls have taken full charge. We suggested that in spite
of all odds, Nifty momentum remains bullish. Expect the market to hit
21234-21410 in the medium term. For the short term, we expect that around 21k,
Nifty should face resistance and can retrace back a bit. RSI on a daily time
frame is overbought and some correction should come before resuming further
bull trend. In such scenario, investors and traders should keep trailing stop
loss or hedge their portfolios with bearish risk-defined strategies”.
Analysts estimate the market to reach
levels between 21,234 and 21,410 in the medium term. However, caution is suggested
for the short term, as around the 21,000 mark, Nifty might encounter resistance
and experience a retracement.
Aggarwal said, “Bulls have taken full
charge. We suggested that in spite of all odds, Nifty momentum remains bullish.
Expect the market to hit 21234-21410 in the medium term. For the short term, we
expect that around 21k, Nifty should face resistance and can retrace back a
bit.
RSI on a daily time frame is overbought
and some correction should come before resuming further bull trend. In such
scenario, investors and traders should keep trailing stop loss or hedge their
portfolios with bearish risk-defined strategies”.
Nifty has been displaying a robust bull
momentum, similar to a “bullet train” in recent days. The index has achieved
lifetime highs, with Nifty futures trading above 21,000. The spot index reached
a high of 20,958.65.
Analysts remain positive in multiple sectors,
including petrochemical, IT, FMCG, media, metals, and banking. The momentum
shift is likely to benefit investors, and despite the market rally, many small
and mid-cap stocks are available at discounted prices.
Aggarwal said, “We remain positive on
petrochemical, IT, FMCG, Media, Metals, and Banking sectors. Momentum shift
will be great & many small, mid-cap stocks are available at good discounts
despite the rally on the Index.
Investors should stay invested in this
golden opportunity. India remains the hot spot for investment and we will
continue to see FII’s & DII’s pouring in money. Larger time frame, Nifty is
very bullish. Don’t get trapped by looking at Index value. Stay invested”.
Caution is advised as the RSI on the
daily time frame is overbought, suggesting a potential correction before the
bull trend resumes.
Investors and traders are recommended to
consider trailing stop loss or hedging strategies to manage risks in this
dynamic market.
Looking at a larger time frame, Nifty is
perceived as very bullish. Investors are encouraged to remain invested, not
being swayed by the index value.
Bharat continues to attract significant
foreign and domestic investments, making it a hotspot for financial inflows.
Despite the ongoing rally, the market
presents a golden opportunity, particularly in sectors showing positive
momentum.
Analysts expect the influx of Foreign
Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) to
persist. Investors are reminded to stay vigilant and capitalize on this
favourable investment climate.
ANI
