Indian markets made a strong comeback after an open fall in early trade today. Before a big recovery, the Sensex fell 880 points to 59,104 at the day’s low. The Sensex was up nearly 100 points at 60,089 in recent trade. The broader Nifty also traded in a wider range of 17,904 to 17,613.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments, said Nifty took support at 17,600 before rebounding.
“On the other hand, if we break 17600 on a close basis, then Nifty may slide further towards 17200,” he said.
The Sensex had broken over 1,100 points on Thursday amid weak earnings and a cautious trend overseas. The move comes after foreign brokerage firms such as Morgan Stanley, Nomura and UBS downgraded India to excessive valuations.
However, VK Vijayakumar, chief investment strategist at Geojit Financial Services, says investors should “wait and see the trend before taking a decision.”
“When smart money selling turns aggressive, retail enthusiasm will be overwhelmed. This is happening now. Investors need not rush to buy now; ‘Dips on Dips’ working well since April last year The strategy may not work when FIIs are selling heavily. However, it may be a good idea to switch from expensive stocks to high quality large-cap growth stocks in the broader market,” he said.
Foreign institutional investors were net sellers in the capital markets on Thursday as they unloaded shares of value ₹3,818.51 crore as per exchange data. They have been selling aggressively in the Indian markets since last one week.
At the interbank foreign exchange, the rupee opened stronger at 74.78 against the dollar and traded higher at 74.77 in early deals, up 15 paise over its previous close.
Asian markets struggled today despite another record performance on Wall Street as disappointing earnings from tech titans Apple and Amazon took some wind off the sails for investors after a string of positive reports. (with agency input)
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