Shillong, November 7: According to V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the current market conditions are conducive to consolidation around current levels and a gradual upward movement.
As per IANS, the S&P 500’s six-day winning streak is contributing to global market stability. Stable crude oil prices, a steady dollar, declining US bond yields, and falling gold prices are all indicators of market stability, he noted.
Vijayakumar emphasized that the rally in small and mid-cap stocks is largely driven by retail investors buying on every dip. The substantial growth in demat accounts, which have now reached 132 million, is a significant factor in the broader market rally, while large-cap stocks are under pressure due to foreign institutional investor (FII) selling.
However, large-cap stocks, including ICICI Bank, HDFC Bank, RIL, Tata Motors, Bajaj Auto, L&T, and Bajaj Finance, have strong fundamentals supported by their Q2 results. Vijayakumar believes that it’s only a matter of time before FIIs become buyers in India, leading to outperformance of large caps in the broader market.
Vaishali Parekh, Vice President – Technical Research at Prabhudas Lilladher, noted that the Nifty has seen a substantial pullback in the last three sessions, breaking through the crucial 19,250 level. This has improved the bias for further gains, with expectations of a rise to 19,500-19,550 levels. She also pointed out that the 19,200 level should act as support, with support for the day at 19,250 and resistance at 19,550.
On Tuesday, the BSE Sensex was down 115 points at 64,843 points, with ICICI Bank and Powergrid both experiencing nearly a 1% decline.