On March 5, the benchmark Sensex and Nifty 50 indices opened trading on a downward trend, influenced by subdued global cues. Nonetheless, analysts maintain their confidence in the market’s direction, stating that the trend remains unaffected as long as the Nifty sustains the 22,000-mark.
In early trade, both the Sensex and Nifty shed 0.2 percent each, with the Sensex standing at 73,707 and the Nifty at 22,354. The broader markets also experienced declines, with the Nifty Midcap 100 and Nifty Smallcap 100 indices down by up to 0.6 percent.
Sacchitanand Uttekar, an analyst at Tradebulls Securities, shared with Moneycontrol that the Nifty is likely to pause momentarily before resuming its upward trend. However, as long as it remains above the 22,000-mark, there is no cause for concern. Uttekar anticipates a strong hurdle for the Nifty around the 22,500 level, with immediate support seen at 22,285.
Vaishali Parekh, Vice-President of Technical Research at Prabhudas Lilladher, also maintains a positive outlook, stating that the Nifty needs to surpass the 22,500-zone to indicate a fresh breakout for further upward movement. She mentioned that the support level for the day is expected at 22,300, with resistance at 22,500.
In terms of sectors, the Nifty Auto index emerged as the top performer, registering a gain of over 2 percent. This surge was primarily led by notable contributions from Tata Motors, Bajaj Auto, TVS Motor, and M&M. Brokerages have shown increased optimism towards Tata Motors’ stock following the automaker’s decision to separate its passenger vehicle (PV) and commercial vehicle (CV) businesses into two distinct entities.
Analysts at Morgan Stanley and JPMorgan have assigned ‘overweight’ ratings to Tata Motors’ stock, with target prices of Rs 1,013 and Rs 1,000 per share, respectively. They believe that the demerger of Tata Motors’ passenger vehicle (PV) and commercial vehicle (CV) businesses could lead to better value discovery for the company.”
Furthermore, the Nifty PSU Bank and Realty indices recorded gains of up to 0.9 percent in early trade on March 5. However, the Nifty IT index emerged as the worst performing sector, following a ‘sell’ downgrade by global brokerage firm CLSA on TCS and HCL Tech, and reiterated ‘sell’ ratings on Wipro and LTI Mindtree.
CLSA stated, ‘We predict the 2024 growth outlook to remain weak, which is not reflected in valuations. Revenue growth guidance provided by HCL Tech and Infosys could serve as negative catalysts for TCS, HCL Tech, and Wipro,'” the brokerage firm added.
Disclaimer: The opinions and investment tips provided by investment experts are their own and do not necessarily reflect the views of the website or its management. Bystox.in recommends users to consult certified experts before making any investment decisions.