Even as the Asian markets traded on a sombre note amid concerns regarding global growth, Indian equities maintained their mojo and ended hitting fresh life-time highs. Sensex and Nifty continued their record-breaking rally for the fourth day on Tuesday, amid fresh foreign fund inflows and a positive trend in the US and European markets. Robust buying in IT major Infosys also contributed to the domestic benchmark indices optimism. The 30-share BSE Sensex climbed 205 points to settle at its new all-time closing high of 66,795. Nifty ended just shy of 19,750 levels. Meanwhile, broader markets ended with marginal weakness. Analysts have read the market pulse as follows: “The bulls continued to lift the market to new heights, but volatility emerged in the second half due to concerns over valuation. Rapid fall in the dollar index and a slide in the US 10-year yield is supporting liquidity in emerging markets. While disappointing economic growth in China and improvement in the US market outlook are drawing attention to the Indian market with the IT sector as the contra bet,” said Vinod Nair, Head of Research at Geojit Financial Services. “The near term trend of Nifty remains up and any consolidation from here could be a buy on dips opportunity. Immediate support is placed at 19550-19600 levels and the upper area of 19800-19850 could act as a short term resistance,” Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said. In the US market, the Dow and S&P 500 crept higher on Tuesday after upbeat earnings reports from Morgan Stanley and Bank of America. European shares edged higher after a muted start on Tuesday, with Swiss stocks outpacing regional peers following a forecast upgrade by drugmaker Novartis. The pan-European STOXX 600 rose 0.2% while Novartis climbed 3.6% after the drugmaker raised its full-year earnings guidance. Technically, a small negative candle was formed on the daily chart with minor upper and lower shadow. Some stocks are showing bullish bias, including Schneider Electric, Havells India, TARC, Godrej Agrovet, and Anant Raj. On the other hand, Tata Motors, IDFC, JSW Energy, UCO Bank, Hindustan Copper, and Exide Industries are showing weakness. HDFC Bank, RIL, Infosys, and ICICI Bank were the most active stocks in value terms, while YES Bank, Vodafone Idea, Suzlon Energy, and PNB were the most active stocks in volume terms. Sarda Energy, Polycab India, Saregama India, Schneider, and AIA Engineering are witnessing strong buying interest, while Lloyds, Rajesh Exports, Cell Point (India), and Jet Airways are among the stocks showing selling pressure. The overall sentiment favors bears as more stocks ended in the red.
