Analysts advise traders to “buy-on-dips,” and they should only consider new long positions if the Nifty maintains its level above 25,250.
Markets rise; IT leads
The October 9 session began on a good one for India’s major indexes, the Nifty 50 and Sensex, thanks to increases in the IT sector. The market’s attention will now shift to TCS’s earnings season, which begins today.
The Nifty was up 32.75 points, or 0.13 percent, at 25,078.90 at 09:15 a.m., while the Sensex was up 104.33 points, or 0.13 percent, at 81,877.99. About 25 shares were steady, 116 shares fell, and 172 shares increased.
The healthcare index saw significant gains as well, as the Nifty Pharma pack surged by about one percent. The media, oil and gas, and IT indexes all had gains, while the real estate group saw a 1.3 percent jump. Conversely, the consumer durables, car, and FMCG industries saw some difficulty and recorded modest trading losses.
TCS Q2 Results Watch
As India Inc. begins its results season for the September quarter, all eyes will be on the large-cap IT services company TCS. Diverse brokerages have different expectations for TCS; some anticipate low single-digit profit growth, while others anticipate up to 9.6% YoY profit growth.
According to VK Vijayakumar, Chief Investment Strategist at Geojit Investments, “the market would be looking more at the developments in the actual market for products like vehicles and consumer electronics since overall Q2 profits are anticipated to remain sluggish.”
He went on to say that there are positive reports of strong demand for these products, which should lead to successful Q3 and beyond. Companies that provide digital platforms have shown resiliency recently. Because the market anticipates a lengthy period of steady growth for these equities, it is supporting these categories.
Nifty Eyes Key Levels
Technically speaking, a persistent rise over 25,150 may pave the way for an upward advance above 25,200–25,250. “On the downside, the 24,950–24,900 range provides immediate support and might be an accumulation area for long holdings. Amruta Shinde, Technical & Derivative Analyst at Choice Broking, said that the index will likely be range-bound in the foreseeable future, ranging between 24,900 and 25,200.
Shinde went on to say that traders are encouraged to continue using a cautious “buy-on-dips strategy,” especially in leveraged positions, due to the current uncertainty and increased volatility. “It is still wise to use tight following stop-losses and book partial gains on rallies. Consider new long bets only if the Nifty continues to trade above the 25,250 level. Close observation of significant breakthrough levels and events in the global market will be crucial in the next sessions, even if the overall trend is still cautiously positive.