Short covering pushing the markets up
The concerns triggered by the ongoing Israel-Hamas conflict had resulted in the creation of big short positions in the market, and now these shorts are being covered pushing the markets up, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
image for illustrative purpose
New Delhi, Oct 12 The concerns triggered by the ongoing Israel-Hamas conflict had resulted in the creation of big short positions in the market, and now these shorts are being covered pushing the markets up, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Results of TCS is a mixed bag with the top line disappointing and the bottom line and margins coming good. The market will wait for the results of Infosys and HCL Tech due on Thursday for taking a view on the IT segment. The rally in banking stocks have more steam left, he said.
There are positive developments that can strengthen the rally in the market. Steadily declining trend in the dollar index and the US bond yields, declining crude and sharp dip in FII selling in the cash market are big positives for the market. If the US CPI inflation data expected tonight dips below 3.6 per cent that will be a shot in the arm for the bulls, he added.
Vaishali Parekh, Vice President -- Technical Research, Prabhudas Lilladher said the Nifty continued with the positive move to close above the 19,800 zone further improving the bias amid the tensions in the middle east and with the result season commencing now, we anticipate volatility to be witnessed in the market.
The index would have the near-term support zone of 19,600 while on the upside 20,000 zone would be the near-term target expected as of now. The support for the day is seen at 19,700 levels while the resistance is seen at 19,950 levels, Parekh said.
BSE Sensex is up 4 points at 66,477 points on Thursday. Maruti is up 1.7 per cent.
