Indian markets likely to open muted, Buy on Dips could work out yet again

According to analysts, one can consider buying the index on every dip as the trend is our friend and presently the trend is on the higher side.

Indian stock markets today are likely to witness a muted opening as signalled by the SGX Nifty. US markets overnight too ended the session lower. Back home, both Sensex and Nifty ended the session at day’s high on Thursday as the ‘Buy on Dips’ strategy played out yet again, whereas a last hour surge in HDFC post its Q4 lifted the sentiment further.

The Sensex ended higher by 555 points at 61,749, while the Nifty ended higher by 165 points at 18,255. “We will still consider buying the index on every dip as the trend is our friend and presently the trend is on the higher side. The support for the Nifty is placed at around 18,050 – 18,000 levels and resistance is capped at 18,400 – 18,450 levels. In case the Nifty breaches below 18,000 levels, than 17,800 will be the next support zone,” said Rohan Patil of SAMCO Securities.
Foreign Institutional Investors continued to add Indian equities for the sixth straight session on Thursday. According to data available on exchanges, FIIs bought shares worth Rs 1,441 crore in the cash markets, against Rs 1,338 crore worth of shares bought in Wednesday’s trading session. On the other hand, flows from DIIs too remained positive as they bought shares worth Rs 441 crore, provisional data from exchanges showed.
Top stocks to watch today are Hero Motocorp, Tata Power, TVS Motor, United Breweries, besides others.

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