Buying on Dips: Markets bounce back after initial slide, IT stocks shine

Mumbai, Jan 5 (IANS) The Indian equity market continued its positive momentum during Tuesday’s intra-day trade.
The market’s up-move comes after global cues subdued investors’ sentiments. Subsequently, investors dived into the market to buy stocks in decline which triggered another uplift.
Amongst sectors, some losses were witnessed in the Metal, Auto and Realty indices. However, IT, Banking and Financial Services spaces traded in the green. Besides, FIIs continued their buying streak, at the same time, DIIs continue selling.
At 2.15 p.m., the NSE Nifty50 traded at 14,167.20 points, higher by 34.30 points, or 0.24 per cent, from its previous close.
Similarly, the BSE Sensex made gains. It traded higher by 164.83 points, or 0.34 per cent, at 48,341.63 points from its previous close.
“The undertone of our market is so strong that it has digested the negative cues from global bourses and dips got bought quickly,” said Jay Purohit, Technical & Derivatives Analyst, MOFSL.
“This is a perfect buy on dips market until we see strong sign of reversal on charts or from derivatives data.”
According to Gaurav Garg, Head of Research at CapitalVia: “After the weak start market soon stabilised and has breached the day’s high due to continued flow of the foreign funds in the market. New lockdown has been imposed in UK following the increase in number of cases of new strain of coronavirus, which can also lead to a small correction in the market in the second half.”
“After a massive rally, investors booked profit in metal stocks while auto and PSU banks also dragged benchmark indices on Tuesday amid weak and uncertain global cues.”

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