The Nifty 50 index is in consolidation mode after touching a life high on Monday and this presents a buy-on-dips opportunity, according to Nagaraj Shetti of HDFC Securities Pvt.
"Nifty has been in consolidation mode. Whenever Nifty has hit a new high, it has seen consolidation," Shetti, a senior technical research analyst at the brokerage, told NDTV Profit. "I'm not expecting any more decline."
"22,000–22,100" will be the support level. It's a buy-on-dips opportunity," he said. "On the higher side, the upside target is 22,700–22,800 in the near term."
For the Bank Nifty, the potential target is at 48,000–48,200 levels.
India's benchmark stock indices ended lower on Tuesday, snapping four days of gains, weighed by losses in Infosys Ltd. and Bajaj Finance Ltd.
The NSE Nifty 50 settled 49.3 points, or 0.22%, lower at 22,356.3, and the S&P BSE Sensex declined 195.16 points, or 0.26%, to end at 73,677.13.
The Nifty hit an intraday low of 22,269.15, and the Sensex touched 73,412.25 earlier in the session.
Indian benchmark 10-year government bond yield will fall below 6% in the next few weeks, said Mahendra Kumar Jajoo, chief investment officer-fixed income at Mirae Asset Investment Managers India Pvt., after Bloomberg announced phased inclusion of bonds in various indices starting Jan. 31, 2025.
"Bloomberg has many large indices that could mean much higher (foreign) inflows... The direction is for the bond yield to come down. How much and when is difficult to say," he said. "It should fall below 6% in the next few weeks."
According to Jajoo, the Indian government has "passed the tests" of fiscal scrutiny, which has led to sovereign bond inclusion in global indices.
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