Indian shares after a turbulent day yesterday opened the session on Tuesday (January 7) in the wake of positive Asian markets. Earlier, the Sensex rose 0.35 percent or 275.05 points to 78,240.04, while the Nifty rose 0.58 percent or 136.6 points to 23,752.65.
By sector, broad buying led to gains today, with oil and gas and consumer durables stocks leading the gains, adding gains of up to 1 percent to the oil and gas index.
Prashanth Tapse, Senior VP (Research), Mehta Equities which fell heavily the previous day said, “Monday’s decline in Nifty was due to persistent selling from FIIs, who disposed of shares worth Rs 2,575 crore, pushing the index below Its 200-DMA is 23,907.
The main drivers for the upward volatility include FIIs selling Rs 7,078.30 crore of Indian equity in January, the rupee hitting a record low of 85.85, spike in oil prices to $74.75 per barrel, and higher US Treasury yields, he added .
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, “The fact that the momentum of the stocks was on the back foot yesterday shows the lack of confidence of the bulls in the context of negative sentiments. The clarification by the government that there is no room for unnecessary worries from this virus, which is not new, can make it easy to repeat in the market , led by strong stocks.”
A technical perspective
Anand James, Chief Market Strategist, Geojit Financial Services on the Nifty outlook said, “The two dojis in the last two hours are indicative of a sustained day. However, expect 23900 and 24000 to resist and try to maintain bias a “sell on rally mode” Meanwhile, the recent low of 23263 is not far away, but there is a fair possibility of a further decline to calm down without entering at 23400.”
We believe that a direct fall below 23263 may take a while to emerge. Major support below is seen at 23000 and 22260, he added.
Asian markets
Most Asian stocks gained in early trade as the region’s technology stocks reflected overnight gains on Wall Street. The key MSCI Asia ex Japan index rose slightly by 0.05 percent. Chinese markets, however, are lagging as the US bans two major technology companies.
