Market Momentum Stays Intact, Say Analysts
The benchmark indices closed higher for the second consecutive day on Friday.
![<div class="paragraphs"><p>The BSE building in Mumbai. (Source: Vijay Sartape/NDTV Profit)</p></div>](https://media.assettype.com/bloombergquint%2F2023-12%2F4a31ce21-4500-4b90-8127-6780fd4d5014%2FTilt_up_of_BSE__Bombay_Stock_Exchange_building_in_Mumbai___Photo_Vijay_Sartape_Source_BQ_Prime___2_.jpeg?auto=format%2Ccompress&w=200)
The markets are experiencing some selling pressure at the higher end, although it recovered positively in the previous trading session, according to analysts.
“The equity markets will consolidate further, but we don’t expect any major decline. Stock-specific action will continue,” Nagaraj Shetti, senior tech research analyst at HDFC Securities Ltd., told NDTV Profit.
The Nifty will see a strong resistance at 21,850, but if it breaks 21,500, the index will find support, he said. “The future momentum of the market remains intact.”
"Nifty began the day with an upward gap but ended without surpassing the previous day's high,” said Sudeep Shah, head of the technical and derivative research desk at SBI Securities Co.
"Bank Nifty, on the other hand, formed a hammer in a previous trading session, the confirmation of which was seen in yesterday's trading session. Looking at the broader market, the Nifty 500 hit a fresh high yesterday." Shah said.
The benchmark indices closed higher for the second consecutive day on Friday, led by gains in Larsen & Toubro Ltd., Tata Consultancy Services Ltd. and Infosys Ltd.
The S&P BSE Sensex closed 179 points, or 0.25%, higher at 72,026.15, while the NSE Nifty 50 gained 52 points, or 0.24%, to end at 21,710.80.
The Sensex hit an intraday high of 72,156.48, while the Nifty touched 21,749.60.
For information technology stocks, January to March will be the reflective period, as December will not show any positive surprises, according to Avinash Goraskshakar, director of research at Profitmart Securities Pvt. "So, the commentary coming out post quarter three results will not be that interesting to see."
Companies like Tata Consultancy Services Ltd. and Infosys Ltd. “have solid businesses and a lot of cash on their books", he said. So, "steady growth can be expected for the information technology sector by September-October next year, provided people have a timeline of 12 to 15 months in mind", Goraskshakar said.