Profit booking expected at higher levels

In spite of favourable factors, there will be dips in the market triggered by profit booking at higher levels, says V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

There are three factors that can keep the market resilient. One, steady decline in US bond yields (10-year around 4.1 per cent now) has created a global environment favourable for equities. Two, India’s GDP growth rate is improving and inflation is coming down. The steadily declining crude price is another big positive. Three, political uncertainty surrounding the 2024 General elections appears to be out of the way after the crucial state election results. These factors have emboldened the bulls and bears have been forced to cover their short positions, he said.

Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher said Nifty opened on a positive note once again with a new record high and thereafter consolidated finding resistance near 20950 zone for rest part of the session halting the ongoing rally as of now.

The near-term support would be 20500 and once a decisive breach above 21000 is establish then further targets till 21800-21900 levels can be anticipated. The support for the day is seen at 20800 while the resistance is seen at 21100, Parekh said.

BSE Sensex is down 61 points at 69592 points on