Mumbai, Nov 5: Indian indices snapped the seven-day bull-run with the benchmark 30 share Sensex ending the day around 54 points or 0.13 per cent lower at 40,248.23. Nifty too ended the day in the red with the 50 share index closing 24 points lower at 11,917.20 or 0.20 per cent.
However, market experts say both the indices have shown marginal drops which means investors should not fear for market volatility in the immediate future.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Private Ltd said market snapped its 7-day positive run with Nifty50 closing down by 0.2 per cent to end at 11,917 on account of profit booking.
FMCG was the only gainer today while Media was the major loser followed by healthcare, metals and PSU Banks.Some of the positive factors like decent earnings season so far, better-than-expected festive sales, hopes of stimulus from the government and continued FIIs inflow continue to maintain optimism in the market. On the Global front as well – markets are continuing their positive movement on the hope of US-China phase 1 trade deal negotiation.
While the markets consolidate near its peak, the positive momentum should continue for a while. With absence of any major events, focus would continue to be on the results season with stock specific action likely over the next few days.Khemka explained that technically Nifty formed a ‘Hanging Man’ kind of candle on daily scale as momentum is missing in the market at higher levels. It has been respecting to the rising support trend line but psychological 12,000 zones is acting as an immediate hurdle to commence the next leg of rally.
Now it has to continue to hold above 11,850 levels to witness an up move towards 12,000 then 12,103 zones while on the downside major support is seen at 11,780 zones.”Vinod Nair, Head of Research, Geojit Financial Services Ltd, said, “Consolidation is seen in the market and for stability we need further developments in global trade policies and fresh stimulus from the government.”
Further contraction in service PMI in October due to muted demand influenced investors to turn cautious. Based on ongoing result outcome investors are focusing on quality stocks while Mid & Small are underperforming.