New Delhi, Nov 6 : The ability of stock markets to climb walls of worries is manifesting clearly in these troubled times, says V.K.Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Buy on dips strategy has worked well for investors with risk-appetite.
The market construct now is favourable for the bulls despite the uncertainty surrounding the Israel-Hamas conflict, he said.
The sharp decline in the US 10-year bond yield from the October high of 5 per cent to 4.58 per cent now is the strongest tailwind for the market.The decline in the dollar index to 105.2, correction in Brent crude to $85 and gold declining to $1988 are indications of a risk-on in markets.The short strategy of FIIs hasn’t worked and they are likely to turn buyers soon, he said.
Even though the small-cap index is showing resilience, valuation comfort and safety are in large-caps.Financials and automobiles are on a strong wicket.
For IT, the momentum is in mid-caps, he added.
Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher said Nifty has picked up well in this week and given a good bounce back above 0.38 per cent retracement to close above 19,220 level.
With 19,050 levels maintained as the decent support zone as of now, the near-term target visible is near the 19,500 -19,650 zone with RSI on the rise from the oversold zone and getting stronger to support the upward movement.
The support for the day is seen at 19,150 levels while the resistance is seen at 19,400 levels.
BSE Sensex is up 303 points at 64,667 points on Monday.
Axis Bank is up more than 2 per cent.
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