Profit booking subdued market; banking stocks sink

Mumbai, Dec 18 Profit booking along with extremely high stock valuations subdued the Indian equity market on Friday.

Accordingly, market opened with marginal gains on back of favourable cues from global bourses.

However, profit booking led to a correction.

Among sectors, IT and Pharma indices gained with losses being seen in banking and financial services sector.

At 1.20 p.m., Sensex was trading at 46,757.36, lower by 132.98 points or 0.28 per cent from the previous close.

The Nifty50 was trading at 13,701.95, lower by 38.75 points or 0.28 per cent from the previous close.

"Since overall chart structure and derivatives data of Nifty is strong, one shouldn't pre-empt shorting opportunities at current juncture. Rather use intraday dips as a buying opportunity," said Jay Purohit, Technical & Derivatives Analyst, MOFSL.

"On stocks front, traders can initiate long positions in stocks like Hindustan Unilever, L&T, Biocon and Infosys with proper risk management."

According to Gaurav Garg, Head of Research, CapitalVia Global Research: "The market opened on a flat note near yesterday's high at 13764.40 and reached a high of 13771.45, but could not maintain its position and soon tumbled down to 13658.60 and was trading at 13688.10. 13800 would act as the next resistance for Nifty while 13600 would act as the nearest support."

"The National High-Speed Rail Corporation has signed the second contract agreement with L&T for the Bullet train project impacting the stock price, soaring it up to near 1300."

( With inputs from IANS )

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