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Benchmark indices continued Monday's fall after opening flat as banks and information technology stocks dragged. At pre-open, the S&P BSE Sensex Index was at 72,332.85, up points 60.91 or 0.08% while the NSE Nifty 50 was at 21,757.50, up by 15.60 points or 0.07%. "Nifty has taken a halt near 21800 zone finding resisting since the last 3 sessions and has been in consolidation with support maintained near 21670 levels with overall bias maintained strong as of now," said Prabhudas Lilladher in a report. "As we have mentioned earlier, the index would need to sustain above the support zone of 21550 levels to maintain the positive bias and upside need to breach above the 21800 zone for fresh breakout to continue with the uptrend. The support for the day is seen at 21600 zone while the resistance is seen at 21900 level," the report added. Bank Nifty also has been hovering near the 48300 zone since the last few sessions and would need to break above the 48600 zone for continuation of the uptrend, the report said. "On the downside the levels near 46300 shall remain as the strong support zone below which the trend shall turn weak. BankNifty would have a daily range of 47900– 48600 levels." At pre-open, the S&P BSE Sensex Index was at 72,332.85, up points 60.91 or 0.08% while the NSE Nifty 50 was at 21,757.50, up by 15.60 points or 0.07%. The yield on the 10-year bond opened flat at 7.21% on Tuesday. Source: Bloomberg The local currency weakened 3 paise to open at 83.27 against the U.S dollar on Tuesday. It closed at 83.24 on Monday. Source: Bloomberg Increase underweight on consumer, raise banks to overweight Remain positive on domestic economy/capex like domestic cyclicals viz. banks, power, telecom, industrial, property Underweight on IT, consumer, energy Key picks: large banks (Axis Bank, ICICI Bank), Developers (Lodha, GPL) Key picks: Power (Coal India, JSW Energy), 2-Wheelers (TVS, Eicher) Key picks: Telecom (Bharti), Cap Goods (Adani Ports, Kajaria) Resurgence of capex upcycle implies robust 6-7% GDP growth over 5-7 years Potential slowdown in govt. capex in upcoming budget not a worry Foreign investor positioning on India is light CY24 should see greater FPI inflows which should help banking stocks
Read more: bloombergquint
