Share Bazaar News India

A week of wild volatility came to a tame close. The Nifty closed at 5,767 up 15 points, while the Sensex shut shop at 19,163 up 71 points.

The markets traded rangebound throughout the day, amid volatility and ended on a flat note. It was a low participation day, as traders and investors played with caution, before the December F&O expiry. IT stocks were the star performers in today’s trade. However, metal, realty and banking stocks remained quite volatile. Capital goods, FMCG, oil & gas and power stocks were the laggards.

Market breadth remained narrow but positive for most part of the day and the volume was relatively lower. It was yet another bad day for the midcaps and smallcaps, which underperformed the frontline counters.

Sensex ended up 70.61 points or 0.37% at 19162.57, and the Nifty closed up 15.35 points or 0.27% at 5766.50.

The Sensex and Nifty went down 4.5% each. CNX midcap index is down 5% while the BSE smallcap index is down 3.2%. The BSE metals index is down 7.5% and the BSE realty index is down 6.4%. BSE oil & gas and capital goods index is down nearly 6% each. BSE bankex is down 5.4% and the BSE auto index is down 3.4%.

Speaking to CNBC-TV18, Deven Choksey of KR Choksey Securities said the market is showing remarkable resilience at current levels. He is hopeful of a good amount of rollover happening because of the long weekend, which suggests the bulls are still hopeful about the market, observed Choksey. He commented that markets will look up in the month of January.

“At current levels, the market is showing remarkably good resilience. At the same time, because of the long weekend, there is a good amount of rollover taking place. It suggests that in the coming month, the bulls are still hopeful about the market. I believe the market is probably stabilised at this level. If you have to look at a certain range and justify that as a consolidation period, which is somewhere around 18,830 and 19,630 for the Sensex, then we will see the market going above 19,630 and going into the territory of 20,500-21,200, going forward,” stated Choksey.

“In my viewpoint, it is a consolidation phase. Having corrected, the market may probably have more reasons to go up; particularly because of stronger fundamental factors like advance tax collections, which we have. The higher amount of money with the local mutual funds, which will force them to put money into the market at lower price may also contribute. The market will look up in the month of January,” he added.

According to Choksey, “You have Rs 3 lakh crore worth of advance tax collection, which translates into more than Rs 9 lakh crore worth of income coming in. This results into good amount of money coming into the projects as well as investment markets. Can we sustain 20% plus of growth into the Nifty and Sensex stocks? If that is the case then probably every fall in the market would be an opportunity.”

Source: Moneycontrol.com