Markets in the US ended largely lower on the first trading session of the week as markets were shut on Monday. The Nasdaq ended lower by 1%, while Dow Jones fell 66 points in trade. Back home, after remaining in the red for most of the session, both Sensex and Nifty staged a sharp late recovery and Nifty ended after hitting a fresh record high of 22,215.
“We expect market sentiment to strengthen further as the prospect of a pre-election rally is quite strong. Further, the BSE market cap has touched a record high of $4.7 trillion, thus, showing strength in the market. Globally, investors await the release of US FOMC meeting minutes as this would provide some insights into the US Fed’s future direction,” said Siddhartha Khemka of Motilal Oswal Financial Services.
On the technical front, Om Mehra, Technical Analyst at Samco Securities, says, “The daily bullish candle confirms the strong outlook while the hourly chart, with higher highs and higher lows, suggests that the primary trend remains strong. The next rally would likely attempt to reach the 22,300-22,350 zone. However, the India VIX, the fear gauge, ended higher and closed at 16.07 level.”
Foreign Institutional Investors on Tuesday offloaded shares worth Rs 1,335 crore in the cash markets. On the other hand, flows from DIIs continued to remain positive as they added shares worth Rs 1,491 crore, provisional data from exchanges showed.
Top stocks to watch today are Hindalco, Zee Entertainment, Union Bank of India, Swan Energy, Devyani International.
