Broader markets beat Sensex, Nifty, Midcap index clocks record closing high; TCS Q3 in focus tomorrow

BSE Sensex and Nifty 50 traded volatile and ended in the red in the last hour of the trade for the second consecutive session on Thursday. BSE Sensex fell 80.74 points or 0.17 per cent and breached the 48,100 levels on the downside, while the broader Nifty 50 index settled below the crucial 14,150 levels. Even as benchmarks settled in the negative territory, market breadth remained in favor of the bulls as 562 securities hit their respective 52-week highs and 165 touched 52-week lows. Nifty 50 index hit a new peak of 14,256.25 in morning trade today. The broader markets outgunned the benchmark indices. The S&P BSE MidCap crossed the 19,000-mark for the first time and hit a record peak of 19,035 in intraday and ended at 18,947, rising 1 per cent. The S&P BSE SmallCap index rose 0.85 per cent at close to settle at 18,773 levels.

Rohit Singre, Senior Technical Analyst at LKP Securities

“Index opened a day with good gap but again failed to hold the gains for second consecutive day and showed a profit booking and managed to close a day on negative note at 14137 with minimal loss. Index has formed a good base near 14100-14000 zone holding above said level one can hold longs but any break below 14k mark can result in more profit booking and we may see dip towards 13800 zone, strong hurdle for nifty is formed near 14250 zone fresh upside only possible above 14250 zone.”

Ajit Mishra, VP – Research, Religare Broking Ltd

“Markets traded range bound and settled almost unchanged. After the gap up opening, profit booking in the index majors pushed the benchmark lower as the session progressed. A mixed trend was witnessed on the sectoral front wherein IT and FMCG traded subdued while metal, realty and banking posted decent gains. Meanwhile, the broader indices outperformed and ended higher in the range of 0.9-1.1%. Amid all, the Nifty index finally closed at 14,137 levels. We believe Q3 earnings and global cues would provide further direction to the markets. To start with, the IT major, TCS, Q3FY21 result would be on participants’ radar. Traders should maintain extra caution in the selection of stocks now and focus on overnight risk management.”

S Ranganathan, Head of Research at LKP Securities

“After the Democrats won the Georgia Senate, global cues were positive in morning trade. Afternoon trade, however, did see profit-taking in FMCG stocks despite which we saw a close above 48K led by financials & metals. The broader markets witnessed demand for Housing Finance, Realty and Liquor stocks.”

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

“14250 has definitely proved to be a stiff resistance point as we have visited around that price point twice. If we can get past that, we should see the markets at 14350-14400. A buy on dips strategy would be the best way to approach the Nifty. However, caution is suggested and it is imperative stops are placed by traders at regular intervals.”