Mixed trends in Stock Markets as bulls maintain momentum
Dec 22, 2023
Mumbai (Maharashtra) [India], December 22 : The stock market opened with mixed signals on Friday, showcasing a fluctuated start to the trading day.
The Sensex observed a marginal dip, opening 90.95 points lower at 70,772.15, while the Nifty displayed a contrasting trend with an opening gain of 8.70 points, reaching 21,263.75.
Among the Nifty companies, 36 witnessed advances, while 13 faced declines, creating a varied landscape for investors.
Notable gainers included Adani Enterprises, Hindalco, Britannia, Divi's Lab, and Tata Steel, contributing to the positive trajectory. On the flip side, Infosys, ICICI Bank, Axis Bank, IndusInd, and Titan experienced declines, acting as the top losers in the initial market movement.
Varun Aggarwal, founder and Managing Director of Profit Idea, analyzed the market dynamics, stating, "Nifty bears fail to reverse the bull trend. Yesterday's strong reversal from 20976 looks highly bullish. A lot of buying has emerged, and candle formation from the bottom is a bullish piercing line. Today we can expect that momentum to continue. The ultra-short-term support for the market will now be yesterday's low of 20976. The market is optimistic because of the anticipation of an interest rate cut next year, and US markets closed at all-time highs."
Aggarwal provided insights into the broader market sentiment, noting, "Broader OI data suggests a range of 20900-21800 on Nifty. We continue to remain bullish on IT, Pharma, Petrochemicals, FMCG sector. For leverage bets, it is advisable to keep trailing stop losses. Support for Nifty lies at 20976-20677-20291. Resistance for the short term will remain at 21593."
Highlighting opportunities for investors, Aggarwal commented, "For investors, dips can be utilized to add quality stocks. We remain bullish on India for the medium to long term. Huge inflows are coming in, and the market has enough liquidity to absorb the selling pressure. Risk-defined strategies are best for traders. Investors can accumulate quality stocks in a staggered manner."
As the day unfolds, market participants will closely watch these trends and adjust their strategies accordingly, considering the dynamic nature of the current market landscape.
