Market Update: Noon Lull | Indices Level Off After Morning Surge; Nifty IT Shines in Neutral Market

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Market Update: Noon Lull | Indices Level Off After Morning Surge; Nifty IT Shines in Neutral Market


The benchmark Sensex and Nifty relinquished their early gains, maintaining a flat trajectory as the market braces for the upcoming earnings season for the quarter ending December. Global cues are mixed, with attention on the US Treasury yield nearing the 4 percent mark amid uncertainties regarding the US Federal Reserve's rate cut plans.

As of 11:48 am, the Sensex showed a marginal uptick of 0.08 percent at 71,902.84, while the Nifty recorded a similar gain of 0.08 percent, reaching 21,676.6. Market breadth witnessed 1,278 advancing shares, 1,096 declining, and 11 trading unchanged.

In sync with the broader sentiment, the Nifty Smallcap 100 and Nifty Midcap 100 posted modest gains of around 0.15 percent each. Among the sectoral indices, Nifty IT led the pack with a 1.2 percent surge, joined by positive movements in Nifty Metal, Nifty Realty, and the auto index. Nifty Pharma and Bank Nifty experienced losses of up to 0.6 percent.

Analysts observed that the ongoing market rally is primarily driven by retail investors rather than institutions. Despite concerns about valuations, the midcap and smallcap indices reached new highs, reflecting retail exuberance. Experts caution that valuations may be unsustainable, and a correction could be on the horizon.

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted the potential risk to the global rally from the Federal Reserve, emphasizing the importance of monitoring Fedspeak for any deviation from market expectations.

From a technical perspective, Deven Mehata, Research Analyst at Choice Broking, recommended buying stocks on dips with a strict stop loss of 21,500, while short-term traders should consider booking profits near the resistance levels of 21,750-21,800.

Bank Nifty's charts suggest potential support at 48,100, followed by 47,800, with resistance levels at 48,300 and 48,640 in case of an advance.

Key developments in other markets include the US 10-year bond yield surpassing the 4 percent mark, a 2 percent decline in oil prices due to stock builds, and a rebound in gold prices driven by a weakened dollar and positive payrolls data.

As the market navigates various factors, including earnings reports and global dynamics, investors remain watchful for potential shifts in the landscape.

Disclaimer: This article is pure understanding of Gyaanleikh Team, please rely after double checking.

Sensex and Nifty
Earnings season
Global market cues
US Treasury yield
Federal Reserve rate cut
Market performance
Retail investors
Midcap and smallcap indices
Valuation concerns
Technical analysis

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