Nifty has found a durable bottom near 10866, says HDFC Securities VK Sharma
VK Sharma, Head Private Client Group & Capital Market Strategy at HDFC Securities averred, We feel Nifty has found a durable bottom near 10866. Focus should remain on the Large cap stocks which can rise further on the back of short covering.
After a sharp recovery of more than 100 odd points yesterday, markets consolidated through the day. While Nifty50 on the National Stock Exchange closed at 11,053.80 points, lower by 13.65 points or 0.12 per cent, BSE Sensex, which had opened at 36,936.64 points, closed at 36,542.27 points, down 109.79 points or 0.30 per cent.
VK Sharma, Head Private Client Group & Capital Market Strategy at HDFC Securities averred, "We feel Nifty has found a durable bottom near 10866. Focus should remain on the Large cap stocks which can rise further on the back of short covering."
Much awaited Aadhaar verdict of Supreme Court pronounced it constitutionally valid. The majority verdict of the five-judge Constitution Bench has ruled that there is no need to link Aadhaar with bank accounts and mobile phones but held that Aadhaar could be passed as a money bill. Sharma said that this judgment will have far reaching repercussions.
U.S. government debt yields continued their upward climb as the Federal Reserve concluded its two-day policy meeting. Sharma said, "Market expects interest rates to be hiked by 0.25%. The hike will push the funds target to 2 percent to 2.25 percent, last seen more than 10 years ago."
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Sharma concluded, "Rising underlying commodity prices are going to help companies from these sector to report robust earnings. We feel Oil & Gas and Metal stocks can outperform the broader market."
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