Mumbai, Nov 10 The Sensex and Nifty early on Friday experienced a decline following Federal Reserve Chairman Jerome Powell's hawkish comments on rates.
However, this negative trend, which persisted over the past three days, reversed in the afternoon session, witnessing a resurgence in fresh buying, said Shrey Jain, Founder and CEO, SAS Online.
Approaching the Diwali weekend, the domestic equities displayed a constrained range, with the Nifty 50 hovering around 19,450 and concluding at 19,425.35, up 30 points, while the Sensex approached the 65,000-mark and closed at 64,904.68. Nifty Bank entered the positive territory at 43,820, registering a gain of 136 points, Jain said.
“We recommend adhering to a 'buy on dips' strategy at significant support levels. For the existing long positions, it is prudent to maintain a strict stop loss at 19,300 for Nifty, while a recommended stop loss of 43,300 is suggested for Nifty Bank," Jain said.
Vinod Nair, Head of Research at Geojit Financial Services, said the benchmark index is taking cues from the global market as the US central bank is not confident that headline inflation is under control and bond yields are mounting higher.
Despite these concerns, the market has displayed strong resistance, anticipating that India's October inflation will be manageable and upside revision is expected for Q1FY24 GDP growth, Nair said.
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