Mumbai: The domestic benchmark indices extended their winning streak to the fifth consecutive session on Tuesday, opening with some moderate gains. However they trimmed early wins to trade a tad lower.
At 9.17 am, Sensex was up 28.49 points or 0.03 percent at 82,473.70, and the Nifty was up 21.15 points or 0.08 per cent at 25,124.35.
On the sectoral front, technology, metals and media stocks rallied sharply. The banking stocks saw mild pressure amid profit booking in trade.
The smallcap and midcap indices gained up to half a per cent, reflecting broad-based buying across the markets.
According to Akshay Chinchalkar, Head of Research, Axis Securities, Yesterday was an upside follow-through on Friday’s advance for the Nifty.
“Technically speaking, whether it’s a pennant or a rectangle that the market is breaking out of, the implications are bullish with an objective of 25,800. 25,200 is important on the upside and as long as bears are unable to force the index below 24,800, bulls clearly have the upper hand. Talks between China and the US are expected to conclude today so what happens there will be the next catalyst for the trend,” he noted.
Vikram Kasat, Head-Advisory, PL Capital, said that efforts to deescalate US-China tensions are welcome, but a comprehensive agreement will likely take time.
“Investors will also be looking for concrete steps toward reaching lasting deals with other trading partners,” Kasat noted.
Since the market has run up in the last two trading days and valuations have got stretched, some profit booking can be considered to hedge against unexpected developments, said analysts.
Globally, the S&P 500 in the US ended slightly higher on Monday, lifted by Amazon and Alphabet, while investors watched US-China negotiations. Asian shares edged up, buoyed by expectations about the US-China trade talks.
The foreign institutional investors (FIIs) continued their buying on second day as they purchased equities worth Rs 1,992 crore on Monday, while domestic institutional investors (DIIs) also extended their buying on the 15th day as they bought equities of Rs 3,503 crore on the same day.
(IANS)
