BSE Sensex is down more than 200 points in Tuesday morning trade amid consolidation moves.
Sensex is trading at 72,558.11 points, down 273.83 points. Powergrid, Tech Mahindra, Maruti are down more than 1 per cent.
V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said the market is likely to consolidate this week in the absence of any known triggers for sharp up or down moves. Since the week is a truncated week of three trading days, volumes have dipped markedly indicating absence of significant directional move.
The Fed’s optimistic message has imparted resilience to the US market and this will impart confidence in markets, globally. The strong growth momentum in the Indian economy will provide the fundamental support to the market, he said.
The recent trend of outperformance of the large-caps over the broader market, particularly the small-caps, is likely to continue. Some froth in the broader market has been removed, but small-cap valuations continue to be high, he said.
Deepak Jasani, Head of Retail Research, HDFC Securities, said US stocks lost ground at the start of a holiday-shortened week on Monday as investors placed themselves ahead of inflation data. Equities corrected after a rally that drove the S&P 500 to multiple records, driving speculation the market has gone too far, too fast. China had introduced guidelines to phase out US microprocessors supplied by Intel and AMD from government personal computers and servers.
Asia-Pacific markets were mixed on Tuesday as the US market took a pause following a rally sparked by optimism over the US Fed’s interest rate stance at its latest meeting, he said.
Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher, said Nifty once again witnessed taking support near the significant 50EMA zone of 21870 levels and recovered strongly to erase the losses almost to touch the 22200 zone during the intraday session. The index maintaining above the 22000 zone is crucial and necessary to carry on the upward move further and thereafter, anticipated to retest the previous peak levels of 22525 zones in the coming days.