Mid-day Mood | Nifty, Sensex off day's high, analysts suggest 'buy on dips'

Fundamental view

Foreign institutional investors (FIIs) turned net buyers for the first time in the last seven sessions, buying shares worth Rs 2,926.05 crore, while domestic institutional investors (DIIs) turned net sellers after a six-day buying on December 27, provisional data from the NSE showed.

Indian stocks are reaching new highs. Overall market sentiments are positive, FIIs have made substantial purchases, once again, adopting the buy-on-dips strategy is advisable, according to Shrey Jain, founder and CEO of SAS Online.

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In the previous session, all the major indices made a fresh all-time high on a closing basis, indicating strength in the markets. "Strong buying by FIIs will help the market move higher. Traders should keep trailing stop loss on their long position at 21,450 on a closing basis," said Deven Mehata, equity research analyst at Choice Broking.

Technical view

Thanks to last week's dip and the current prices crossing recent highs, a saucer formation is now evident on the hourly chart. "According to this pattern, prices may continue the upward movement in the near term towards the 22,000 mark, with 21,800-21,850 serving as immediate resistance, said Sameet Chavan, technical analyst at Angel One.

"On the downside, bulls remain resilient, quickly buying any minor dips. Looking ahead, the bullish gap left yesterday around 21,500-21,480 is likely to act as strong support, before that the previous resistance around 21, 600, which will serve as immediate support," he added.

Key Nifty gainers

Coal India, NTPC, Hero MotoCorp, Nestle India, BPCL

Key Nifty losers

Ultratech Cement, Eicher Motors, Maruti, Infosys and Adani Ports

Key Sensex gainers

NTPC, Nestle India, Powergrid, HDFC Bank and M&M

Key Sensex losers

Ultratech Cement, Maruti, Infosys, L&T, Asian Paints and Axis Bank

Stock moves

Suzlon Energy: Shares of the renewable energy company jumped 4 percent after the company announced winning an order for the development of a 300-MW wind power project for Apraava Energy. As part of the order, Suzlon will install 100 wind turbine generators (WTGs) with a Hybrid Lattice Tubular (HLT) tower and a rated capacity of 3 MW each at the client’s site in Karnataka.

HUDCO: Shares of the state-owned company surged 18 percent to hit a fresh record high on signing a Memorandum of Understanding (MoU) with the State Government of Gujarat. The MoU for an investment of up to Rs 14,500 crore for financing the housing and urban infrastructure projects in the western state.

Also Read | Markets set for 8th straight year-end in green, outlook positive for 2024

Canara Bank: Shares of the PSU Bank jumped over 3 percent after it gave an in-principle nod to initiate the listing process of its mutual fund subsidiary, Canara Robeco Asset Management Company through an initial public offering. The company will provide further details of the listing in the due course.

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