Benchmark indices Nifty 50 and Sensex started the November 26 session on a positive note, buoyed by supportive global cues, as traders hiked their bets that the U.S. Federal Reserve would trim its interest rate in December.
At 09:18 a.m., the Sensex was up 216.51 points or 0.26 percent at 84,803.52, and the Nifty was up 68.45 points or 0.26 percent at 25,953.25. About 1534 shares advanced, 724 shares declined, and 190 shares unchanged.
All sectoral indices opened in the green, signalling broad-based buying across the market. Nifty IT led the gains with a rise of 0.64 percent, followed by strong moves in metal, PSU bank, consumer durables, oil and gas, and financial services indices.
Auto, private bank, media and FMCG also posted modest advances. Realty, pharma and healthcare inched up slightly, reflecting a steady but measured appetite for risk across sectors.
During times of indecisiveness in the markets, VK Vijayakumar, Chief Investment Strategist, Geojit Investments said the best strategy for retail investors is to refrain from trading and slowly accumulate fairy-valued high quality growth stocks which will be available at attractive valuations due to heightened volatility.
"Such stocks will bounce back soon. Investors’ psychological behaviour is more important in such contexts. Fundamentals indicate that the market is moving to a new high: It’s only a question of time. Investors’ response should be based on this understanding."
Globally, stocks regained momentum as US.. consumer confidence in November saw its steepest drop since April, and retail sales rose modestly in September, suggesting consumer spending is cooling after months of strong demand. The delayed economic reports out of the US further cemented bets for a Fed cut in December, even after Chair Jerome Powell warned last month that a reduction isn’t a foregone conclusion.
On the technical front, analysts believe that the 26,000-26,050/85,000-85,200 zone remains a key resistance area for traders. "As long as the market trades below this level, weak sentiment is likely to continue. On the downside, 25,800/84300 would act as an immediate support zone for the bulls," said Shrikant Chouhan, Head Equity Research, Kotak Securities.
He added that below this, the market could slip up to 25,675/84,000. On the higher side, a successful breakout above 26,050/85200 could push the market towards 26,150-26,200/85,500-85,700. "The ideal strategy is to buy Nifty at 25,950 and at 25,800; however, it is mandatory to keep a stop loss at 25,700 levels."
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Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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