1 month ago
Investors could exercise caution ahead of the RBI policy later this week, though the central bank is largely expected to hold rates steady, experts say
April 02, 2024 / 09:57 AM IST
US stocks closed mostly lower on April 1, halting a rally that has recently brought all three indexes to fresh record highs.
Indian equity benchmarks the Sensex and the Nifty, which touched record highs in the previous session, opened a tad lower on April 2. According to experts, a minor consolidation is likely but the larger trend for the market remains bullish and investors should "buy on dips".
At 09:33 hrs IST, the Sensex was up 48.81 points or 0.07 percent at 74,063.36, and the Nifty was up 28.80 points or 0.13 percent at 22,490.80. About 2130 shares advanced, 696 shares declined, and 114 shares unchanged.
Sectorally, the Nifty IT index was in the red, with Infosys and TCS weighing heavy. Bank Nifty, Nifty metal and Nifty PSU bank were trading lower.
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Fundamental View
Technical and fundamental opinions suggest a small dip from the current levels. “Profit-taking may come into play due to excessive optimism, subdued US market close in overnight trades, and FIIs turning net sellers in Monday's positive session," said Prashanth Tapse, Senior VP (Research), Mehta Equities.
Domestic investors could exercise caution ahead of the RBI policy later this week, though it is more likely that interest rate may remain steady as inflation remains above the comfort level, he said.
Technical Levels
On the April 1 chart, a small positive candle was formed with an upper shadow. "Technically, this pattern indicates a formation of doji type candle pattern. Such doji formation at new highs/after a reasonable upmove signal chances of consolidation or minor dip from the higher levels," said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.
However, he added that despite a minor consolidation, the overall larger trend of Nifty remains positive and the market is now in an attempt of breaking above the crucial overhead resistance of 22,500-22,550 levels.
Though, Nifty is now placed at the crucial hurdle of around 22,500 levels, the overall chart pattern remains positive and we are unlikely to see any sharp decline from here. Any consolidation or dip could be a buying opportunity.
Global Markets
Wall Street indices settled down on April 1, halting a rally that has recently brought all three indexes to fresh record highs. As investors digested Federal Chair Jerome Powell’s message that the central bank isn't in a rush to lower interest rates, investors sold off bonds.
This sent Treasury yields surging by the most in more than five months. The 30-year yield rose 13 basis points to 4.467 percent, from 4.337 percent on Thursday.
Asian stocks got off to a mixed start Tuesday as strong US data sustained the view the Federal Reserve will be slow to cut rates.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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