The market ended flat amid volatility, taking a pause after the recent massive surge. It opened with modest gains, however, profit taking emerged capping the upside till the end of the session. Mixed trend was witnessed on the sectoral front wherein mostly ended on flat note.
After gaining over 150 points in early trade, the Sensex ended 2.72 points higher at 37,754.89, while the Nifty closed at 11,343.25, up 1.55 points. NTPC, Sun Pharma, Coal India, ONGC, Bharti Airtel, Vedanta, Tata Steel and Kotak Bank, were major gainers in the Sensex pack.
Financial stocks such as Yes Bank and IndusInd Bank were among the top percentage gainers.
Technical View
Analysts said investors should be cautiousness as the consolidation or the due profit booking becomes clearly overdue as well on charts and it may trigger anytime.
Further, the Bearish Belt Hold is a reversal pattern that usually signals aggressive bulls or to at least indicate to worry about position size as the shaven head indicates clear resistance on the upside.
At this time traders would rather be cautious and remain abeam and look to utilise the opportunity to enter on some decent dips.
"Nifty forms a "Bearish Belt Hold" candlestick pattern indicating a possible reversal on the index and market sentiments. Fuelled with volatility, bulls extended the breakout from 11170 to 11383," Mustafa Nadeem, CEO, Epic Research said.
The two days post breakout saw a good buying momentum in terms of overall breadth and broader market buying .
Global markets have been giving positive cues as S&P 500 and FTSE100 have been up for the fourth consecutive day.
Market View
The momentum remains positive as investors are betting on a stable government.
"We're seeing pre-election rally in anticipation of stable government. The recent bargain hunting in Mid-Cap and Small-Cap space has further strengthened the move. Indications are still favourable from the private banking majors along with select heavyweights from other indices. We advise continuing with "Buy on dips" approach. The Nifty has next major hurdle at 11,525, said Jayant Manglik, President- Retail Distribution, Religare Broking.
