*New Delhi, December 13:* The BSE Sensex witnessed a decline of 249 points in Wednesday morning trade, primarily attributed to selling pressure on IT stocks. The BSE Sensex is currently trading at 69,301 points, with Infosys and TCS experiencing a dip of more than 2 percent.
Vaishali Parekh, Vice President – Technical Research at Prabhudas Lilladher, noted that the Nifty faced resistance near the 21,000 zone, leading to intraday profit booking. The index dipped towards the 20,850 zone, concluding in the red near 20,900 levels.
Parekh highlighted a near-term support at 20,850, anticipating consolidation. A decisive breach above 21,000 levels is deemed necessary to sustain the uptrend, with potential higher targets of 21,800-21,900 levels in the coming days. The major support lies near the 20,550 zone of the rising trendline.
Support for the day is seen at 20,800, while resistance is observed at 21,050. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, expressed a bullish outlook on the short-term market despite high valuations.
Factors such as growth momentum in the economy, consistent buying by DIIs and retail investors, a shift in FPI strategy from selling to buying, and favorable global cues contribute to the market’s resilience. The global market trend is expected to be influenced by tonight’s Fed message. Markets are anticipated to await the Fed chief’s message before taking a decisive turn.
Despite India’s CPI inflation rising to 5.55 percent in November (compared to 4.87 percent in October), the figure remains below the market expectation of 6 percent. October’s IIP growth of 11.7 percent indicates the continuation of economic growth momentum.
The steady decline in Brent crude, now below $74, is seen as strengthening India’s macros. Vijayakumar highlighted the strong performance of leading banks, capital goods, cement, oil marketing companies, and a prominent airline company.
