The benchmark Sensex and Nifty 50 indices started trading on March 5 on a negative note following subdued global cues. However, analysts believe that there is no reversal in trend as long as the Nifty sustained the 22,000-mark.
Sensex and Nifty shed 0.2 percent each in early trade to 73,707 and 22,354. Broader markets also declined with Nifty Midcap 100 and Nifty Smallcap 100 indices down up to 0.6 percent.
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"The Nifty is likely to take a pause in order to resume its uptrend. But as long as it doesn't close below the 22,000-mark, we have nothing to worry about. We expect the Nifty's strong hurdle to come in around 22,500, with an immediate support of 22,285," told Sacchitanand Uttekar, analyst at Tradebulls Securities to Moneycontrol.
Vaishali Parekh, Vice-President of Technical Research at Prabhudas Lilladher also maintained a positive bias, saying that the Nifty must breach 22,500-zone to indicate a fresh breakout for further upward move. "The support for the day is seen at 22,300 and resistance at 22,500," she added.
Sectorally, Nifty Auto index was the top sectoral performer, gaining over 2 percent driven by Tata Motors, Bajaj Auto, TVS Motor, and M&M. Brokerages turned bullish on Tata Motors stock after the automaker decided to spin off its passenger vehicle (PV) and commercial vehicle (CV) businesses into two separate entities.
ALSO READ: Tata Motors demerger: JLR in the driver's seat for PV valuations
Analysts at Morgan Stanley and JPMorgan shared 'overweight' ratings on the counter with target prices of Rs 1,013 and Rs 1,000 per share, respectively, saying that the demerger could help Tata Motors in better value discovery.
Additionally, Nifty PSU Bank and Realty indices also eked out some gains as it surged up to 0.9 percent on March 5 early trade. On the flipside, Nifty IT index was the worst sectoral performer after global brokerage firm CLSA downgraded TCS, HCL Tech to 'sell' from 'underperform' and reiterated 'sell' ratings on Wipro and LTI Mindtree.
"We predict 2024 growth outlook to remain on the weaker side and not reflected best in valuations. The revenue growth guidance by HCL Tech, Infosys would be negative catalysts for TCS, HCL Tech, and Wipro," the brokerage firm said.
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