Stock market trades nearly flat after early gains, all eyes on US-China talks
The domestic benchmark indices extended their winning streak to the fifth consecutive session, opening with some moderate gains
- MUMBAI — The domestic benchmark indices extended their winning streak to
the fifth consecutive session on Tuesday, opening with some moderate gains.
However they trimmed early wins to trade a tad lower.
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- At 9.17 am, Sensex was up 28.49 points or 0.03 percent at
82,473.70, and the Nifty was up 21.15 points or 0.08 per cent at 25,124.35.
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- On the sectoral front, technology, metals and media
stocks rallied sharply. The banking stocks saw mild pressure amid profit
booking in trade.
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- The smallcap and midcap indices gained up to half a per
cent, reflecting broad-based buying across the markets.
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- According to Akshay Chinchalkar, Head of Research, Axis
Securities, Yesterday was an upside follow-through on Friday's advance for the
Nifty.
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- “Technically speaking, whether it's a pennant or a
rectangle that the market is breaking out of, the implications are bullish with
an objective of 25,800. 25,200 is important on the upside and as long as bears
are unable to force the index below 24,800, bulls clearly have the upper hand.
Talks between China and the US are expected to conclude today so what happens
there will be the next catalyst for the trend,” he noted.
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- Vikram Kasat, Head-Advisory, PL Capital, said that
efforts to deescalate US-China tensions are welcome, but a comprehensive
agreement will likely take time.
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- "Investors will also be looking for concrete steps
toward reaching lasting deals with other trading partners,” Kasat noted.
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- Since the market has run up in the last two trading days
and valuations have got stretched, some profit booking can be considered to
hedge against unexpected developments, said analysts.
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- Globally, the S&P 500 in the US ended slightly
higher on Monday, lifted by Amazon and Alphabet, while investors watched
US-China negotiations. Asian shares edged up, buoyed by expectations about the
US-China trade talks.
