Bulls are in a 'fatigue stage'
Published On: Thursday, July 1, 2021 | By: Team KnowMyStock
The benchmark indices (BSE Sensex and NSE Nifty) are struggling to cross their recent record levels and are in a consolidation phase, which according to analysts, is a sign that the bulls are in a 'fatigue stage'. The BSE barometer Sensex is currently trading 800 points down from its all-time high of 53,126 while Nifty50 is off some 200 points from the record peak of 15,915. While the overall trend for the benchmark indices looks positive, the current scenario is reflecting a confused state of mind among market players. In the first half of the current year 2021, Sensex and Nifty have gained 10 percent and 12 percent, respectively.
Fundamentally, analysts are of the view that for the index to get out of this sideways phase, leadership change is needed. "If the market is to turn bullish again, the current underperforming sector like banking has to emerge as a leader in the next leg of the rally. In the present rally, metals and IT have been the clear leaders and these two segments are likely to remain resilient but they are unlikely to move up significantly due to high valuations. So, market leadership change is imminent, and private sector banking and industrials are the likely candidates," say someexperts.
On technical charts, Sensex has immediate support at 52,100 and major support at 51,200. Likewise, Nifty50 is showing firm bullishness at 15,600 and 15,150 levels. As long as these levels are not breached with aggressive selling pressure, the medium-term trend for both indices is expected to stay positive.
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