Its tug of war on Dalal Street as the bears cash in at every bounce. The Nifty ended below 7450 ahead of January F&O expiry. The 50-share index closed up 1.60 points at 7437.75 and the Sensex was up 6.44 points at 24492.39. About 1363 shares have advanced, 1196 shares declined, and 189 shares are unchanged.
NTPC, Dr Reddy’s Labs, Tata Motors and Tata Steel were top gainers while BHEL, HUL, Hero MotoCorp, Adani Ports and Hindalco were losers in the Sensex.
The midcaps were under pressure after most of their reported earnings missed topline expectations.
Despite the current volatility, few analysts feel long-term outlook for the market remains positive. Vaibhav Sanghavi, MD of Ambit Investment Advisory expects more outflows from emerging markets.
In the near-term, the Nifty can possibly rebound to 7550 and if the global rally continues then 7700 is also a possibility, says CNBC-TV18’s Udayan Mukherjee. However, he adds that the current rally is only a relief rally. The trend, according to him, is on the way down with periodic upmoves. He believes the market is currently in the ‘acceptance’ phase.
Meanwhile, indices are contemplating if US Federal Reserve will hike interest rate decision later in the day. In Asia, the Shanglai composite extended its losses from yesterday’s 6 percent drubbing and ended half a percent in the red.
The Japanese Nikkei and Hong Kong’s Hang Seng, however, were not perturbed with the former gaining more than 450 points. The Hang Seng also closed more than a percent in the green.
Both the Nymex and the Brent were under pressure and heading towards the 30-dollar a barrel mark.