Market today: After opening below, efforts of recovery are being seen in the market. Nifty has climbed 100 points from lower levels to above 25900. At present it is trading around 25,976 with a gain of 65.95 points or 0.25 percent. Nifty is getting support from Infosys, TCS, HCL TECH and HUL. Pressure is visible in Bank Nifty. Midcap has also returned in the green.
There has been strong buying in IT shares in the hope of a trade deal between India and America soon. Nifty’s IT index has increased by about 2 percent. PERSISTENT has become the top gainer in futures with a jump of 3 percent. Besides, LTIM and Coforge have also been among the top gainers. At the same time, there is strong growth in select auto accessories like Motherson and Sona BLW.
Solar industries have gained momentum on the basis of new orders. At the same time, LG Electronics has strengthened by 3 percent due to the bullish report of Morgan Stanley. Also there is excitement in Concours. Buying is visible in Federal Bank and Titan. At the same time, KEC International has lost 6 percent due to the ban on new tenders. Power Grid has barred the company from participating in tenders for nine months. However, the company has said that this ban will not affect the existing projects. On the other hand, after rising by 90 percent in 5 days, a sharp decline is being seen in GRO today. There is a lower circuit of 10 percent in the stock.
What should be the strategy in the market now?
Hitesh Taylor, Research Analyst, Choice Broking, says that buy-on-dips approach will be appropriate in selected stocks. Tight trailing stop-loss and some profit-booking on rally would also be advisable. Hitesh Taylor further said that new long positions should be taken only when Nifty easily crosses 26,100. Along with this, a close eye should also be kept on global factors and technical indicators.
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