Indices recover partly from Wednesday’s cuts on DII buying
₹1,464.70 and bears trimmed short bets in Nifty futures contracts. The domestic buying and short covering supported the rally despite foreign portfolio investors (FPIs) selling shares worth a provisional ₹1,636.19 crore. The benchmark indices had shed 1.3-1.4% on Wednesday after a seven-week rally that saw them climb 12% from their lows on 26 October.
Fears of a return of covid, and changes to AIF regulations by the RBI were among the reasons attributed to the profit booking. “It was profit-booking ahead of the year end," said Andrew Holland, CEO, Avendus Capital Alternate Strategies, about Wednesday’s fall. “I think we could see some consolidation before markets resume their uptrend by the end of the Christmas week." Holland said crude prices hadn’t run up sharply despite the Yemeni rebel attacks on commercial shipping vessels in the Suez Canal corridor, said to be a fallout from the Israel-Hamas war.
Brent crude generic futures contract traded down almost 2% at $78.24 a barrel at 7 pm IST, which was way below its 52-week high of $95.96 following the outbreak of hostilities between Israel and Hamas in October. Holland’s view on consolidation was supported by market technicals, which showed the market fell just short of retracing 50% of the fall from Wednesday’s record high 21,593 to Thursday’s low of 20,976.80. The fall was a total of 616 points while a 50% retracement from low implies 308 points.
Thursday’s closing of 21,255.05 meant a retracement of 278 points from the low of 20976.80. “A recovery above 50% is viewed as a positive, so we will have to wait and see if the market trends above 21,285 tomorrow (Friday)," said Rajesh Palviya, technical and derivatives head of Axis Securities. Palviya said if the market
. Read more on livemint.com
