FII Actions
Analysts predict sideways consolidation in domestic markets on monthly F&O expiration.
The Sensex and Nifty lost 1% each on January 25 afternoon amid mixed global cues. Analysts forecast sideways consolidation on the monthly F&O expiration day, with 21,000 as a key Nifty support.
On January 25, the Sensex fell 1% to 70,324 and Nifty fell 0.9 percent to 21,247.
These factors are dragging the market:
FII selling
Analysts expect sideways consolidation to continue in the coming sessions due to FII selling during the week.
Foreign investors have sold Rs 19,300 crore in shares this month.
Q3 India results were below Street estimates. As HDFC Bank led the pack, most banks posted poor statistics.
Volatility high
The morning India VIX, which predicts market volatility, rose over 3% to 15. The Nifty Midcap 100 and Nifty Smallcap 100 gained 0.2 percent each in the opening hour of session.
IT and banks lag.
The Nifty IT index was hardest hurt by Tech Mahindra’s 4% drop after dismal Q3 financials.
HSBC analysts gave the counter a “hold” call, doubting its near-term recovery in a macro environment with vertical demand slowing.
Bank Nifty fell to 44,892 as investors booked profits on margin worries and slow deposit growth in private sector lenders like Axis Bank, HDFC Bank, ICICI Bank, and Kotak Mahindra Bank.
Despite the trend, Bank of Baroda and Punjab National Bank shares rose up to 1%.
Choice Broking Research Analyst Deven Mehata stated Bank Nifty support was 44,800, 44,700, and 44,500. “If the index advances, 45,300 would be the initial key resistance, followed by 45,500 and 45,700,” said.
Firm treasury yields stun investors
Poor sentiment was also caused by rising treasury yields. Overnight, the benchmark US 10-year Treasury note yield jumped more than 3 points to 4.1 percent, while the 2-year note yield rose more than 3 basis points to 4.38 percent.
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Analysts predict sideways consolidation in domestic markets on monthly F&O expiration.
The Sensex and Nifty lost 1% each on January 25 afternoon amid mixed global cues. Analysts forecast sideways consolidation on the monthly F&O expiration day, with 21,000 as a key Nifty support.
On January 25, the Sensex fell 1% to 70,324 and Nifty fell 0.9 percent to 21,247.
These factors are dragging the market:
FII selling
Analysts expect sideways consolidation to continue in the coming sessions due to FII selling during the week.
Foreign investors have sold Rs 19,300 crore in shares this month.
Q3 India Inc. results were below Street estimates. As HDFC Bank led the pack, most banks posted poor statistics.
Volatility high
The morning India VIX, which predicts market volatility, rose over 3% to 15. The Nifty Midcap 100 and Nifty Smallcap 100 gained 0.2 percent each in the opening hour of session.
IT and banks lag.
The Nifty IT index was hardest hurt by Tech Mahindra’s 4% drop after dismal Q3 financials.
HSBC analysts gave the counter a “hold” call, doubting its near-term recovery in a macro environment with vertical demand slowing.
Bank Nifty fell to 44,892 as investors booked profits on margin worries and slow deposit growth in private sector lenders like Axis Bank, HDFC Bank, ICICI Bank, and Kotak Mahindra Bank.
Despite the trend, Bank of Baroda and Punjab National Bank shares rose up to 1%.
Choice Broking Research Analyst Deven Mehata stated Bank Nifty support was 44,800, 44,700, and 44,500. “If the index advances, 45,300 would be the initial key resistance, followed by 45,500 and 45,700,” said.
Firm treasury yields stun investors
Poor sentiment was also caused by rising treasury yields. Overnight, the benchmark US 10-year Treasury note yield jumped more than 3 points to 4.1 percent, while the 2-year note yield rose more than 3 basis points to 4.38 percent.