The domestic benchmark indices continued to trade steady, holding on to opening gains, while the Nifty was trading above 10,350.
The domestic benchmark indices continued to trade steady, holding on to opening gains, while the Nifty was trading above 10,350. The 30 share Sensex opened more than 100 points higher, tracking positive domestic and global cues, and held on to gains made in the morning trade. For the fourth day in a row, the benchmark Nifty50 continued to be range-bound from 10,346 to 10,365 levels and continued to consolidate. It ended with a modest gain of 6.45 points, or 0.06 per cent, on Thursday after seeing a smart recovery from the low point of the day.
Indian IT bellwether Infosys shares gained by more than 1.5% on Friday morning. Bajaj Auto, Reliance Industries and Bharti Airtel were trading up by more than 0.5% each. Nifty 50 stocks including IndusInd Bank, Tech Mahindra and Aurobindo Pharma gained more than 1% each, to help the index maintain opening gains. 40 stocks gained in trade while 10 registered declines in NIfty. Tata Steel, Adani Ports and Hindustan Unilever shed nearly 1% each on Sensex.
Technical experts predict that Nifty could conslidate in the range of 10,300-10,500. “The recent bounce in Nifty is mainly due to short covering; FIIs too covered some of their existing shorts and formed fresh long positions in index futures. However, they continue their selling streak in equities and stock futures segment. At present, the above data points is not hinting any clear direction for index; but, looking at options activity it seem that index may consolidate in a range of 10300-10500 for the remaining part of November series. Hence, we would advise traders to prefer stock specific approach and remain light in index,” Sneha Seth, Derivative Analyst at Angel Broking said in a note yesterday.
The markets will also keenly await the word from S&P on India credit rating upgrade. After global credit rating agency Moody’s upgraded India’s sovereign rating to Baa2 from Baa3 last week, all eyes will be on Standard & Poor’s (S&P) India review expected today. Interestingly, while the Moody’s Investor Service upgrade came after a long gap of 14 years, S&P had last upgraded India’s rating from junk grade “BB+” to lowest investment grade “BBB-” 10 years ago in 2007.