Sensex, Nifty off to muted start as bulls take breather after 13-day-long run
Nifty were trading flat on Tuesday morning in the absence of any major triggers. However, a 3-5% rally in defence stocks like HAL, GRSE, and Mazagon Dock cheered retail investors.
The rally in defence stocks came after the Cabinet Committee on Security cleared a Rs 26,000 crore deal for the procurement of 240 aero-engines for Sukhoi-30MKI fighter jets.
Among other sectors, pharma and real estate were trading with gains while IT was trading lower.
«The record-breaking winning streak of the Nifty is likely to end soon and the market needs to correct. But there are no signals of a major breakdown or triggers for a breakout,» said Dr. V K Vijayakumar of Geojit Financial.
FIIs have been showing renewed buying interest on Dalal Street in recent days. After last week's buying of Rs 9,217 crore, foreign investors were net buyers to the tune of Rs 1,735 crore yesterday.
«Nifty is likely to trade within 24,700-26,000, with resistance at 25,500. Key trades include buying Nifty at 25279 and Bank Nifty at 51440, while Britannia is recommended with targets up to Rs 6,179, supported by bullish momentum indicators,» said Prashanth Tapse of Mehta Equities.
Global markets
The US market was shut yesterday on account of the Labor Day holiday. Asian markets are currently trading on a mixed note reacting on South Korea's August month inflation data which eased to a 42-month low at 2.0% YoY.
Japan's Nikkei share average advanced on Tuesday as a weaker yen buoyed investor sentiment, while long-term domestic bond yields rose to the
