Profit booking wipes out Nifty’s gains

New Delhi, Jan 9 : Siddhartha Khemka, Head Retail Research Motilal Oswal Financial Services, on Tuesday said that Nifty opened on a strong note on the back of positive global cues, surpassing 21700 on an intraday basis.

He said that it witnessed profit booking towards the end of the day which wiped off the days gains with Nifty closing with marginal gains of 32 points at 21545 levels.

He said that the sector-wise, it was a mixed bag with buying seen in Realty, Pharma, Auto, and IT.

“Realty sector rallied by 2 per cent on the back of healthy pre-quarterly updates released by companies in the last few days,” he said.

He said that a record registration of 40.32 lakh people (74 per cent YoY; 31 per cent MoM) in SIPs for December reflects confidence among investors in Indias macroeconomic fundamentals and positive momentum in the market.

“Bloomberg Index Services to include Indias Fully Accessible Route (FAR) bonds in the Bloomberg Emerging Market (EM) from September 2024 boosted the sentiments,” he said.

He said that we expect the market to consolidate in a broader range and take cues from the upcoming earning season.

Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities said the short-term trend of Nifty remains weak and emergence of selling pressure at the lower highs around 21750-21850 levels indicate weak bias for the short term.

“Any upside bounce from here could encounter hurdle around 21700 levels,” he said.

san/dan