by IANS |
New Delhi, Nov 7 (IANS) The market construct is favourable for consolidation around current levels and gradual up move, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The six-day winning streak in S&P 500 provides global stability to markets. Stable crude, steady dollar, down trending US bond yields and declining gold are indicators of stability in markets, he said.
Investors have to appreciate the fact that the rally in small and midcaps is primarily driven by retail buying on every dip. The explosive growth in demat accounts which have touched 132 million now is playing a major role in the rally in the broader market while the large caps are under pressure from FII selling, he added.
But large caps particularly ICICI Bank, HDFC Bank, RIL, Tata Motors, Bajaj Auto, L&T and Bajaj Finance have fundamental strength reinforced by the Q2 results. FIIs turning buyers in India is only a question of time. When that happens, large caps will outperform the broader market, he added.
Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher, said Nifty has witnessed a decent pullback in the last three sessions to breach above the important and crucial barrier zone of 19,250 levels to improve the bias to some extent anticipating for further rise till 19,500-19,550 levels.
The levels near 19,200 would act as the support from current levels which needs to be sustained. The support for the day is seen at 19,250, while the resistance is seen at 19,550, Parekh said.
BSE Sensex is down 115 points at 64,843 points on Tuesday. ICICI Bank, Powergrid are down almost 1 per cent.