Consolidation phase may continue

Volatility continues to reign Dalal Street as profit booking emerged after the market opened higher on Wednesday. The Sensex shed 18.88 points, or 0.06%, to settle at 33,793.38, while the Nifty 50 rose 1 point or 0.01% to settle at 10,443.20. The broader market ended with decent gains, as the BSE Mid-Cap and Small-Cap indices rose 0.53% and 0.98%, respectively.

Outlook for today

Jayant Manglik, president, Religare Broking, said: “The Nifty index started on a firm note (on Wednesday), but witnessed stiff resistance at higher levels, as it slipped from an intra-day high of 10,504 and registered a flat closing. However, broader market indices outperformed…The sectoral indices exhibited a mixed trend. While Metals, Capital Goods, Consumer Durables and Realty outperformed, Auto, Oil & Gas, IT and Healthcare witnessed selling pressure. The global cues remained positive with Asian and European markets trading in the green.

“Consolidation could continue for a few more sessions and volatility is expected to remain high ahead of the Q3FY18 earnings season (likely to begin in the next week). Market participants would continue to closely monitor the macro events (like inflation & IIP growth) and global developments. With indices near record high, we advise traders to keep their positions hedged.

Market view

Vinod Nair, head of research, Geojit Financial Services, said: “Global macros stayed positive and is giving support (to the Indian market). Metals outperformed on expectation of earnings growth whereas auto stocks witnessed profit booking after the recent run-up. Investors are awaiting the results season for signs of earnings upgrade."

—Ashwin Punnen