Market Ahead Podcast, Aug 25: Top factors that could guide markets today

The tussle between bulls and bears may keep trading volatile on Wednesday as traders may look to book profits at higher levels while strategic investors may eye bargain hunting opportunities.

On Tuesday, the frontline indices posted strong gains amid positive global trends and on short-covering in metal and banking packs.

The S&P BSE Sensex reclaimed the 56,000-mark in the intra-day deals but closed at 55,959, up 403 points or 0.7 per cent.

It’s NSE counterpart, on the other hand, surpassed the 16,600-mark and ended at 16,625, up 128 points or 0.8 per cent.

Even the broader reversed their downtrend and ended higher yesterday with the BSE MidCap and SmallCap indices settling 1.5 per cent and 1.7 per cent up, respectively.

Bajaj twins — Bajaj Finance and Bajaj Finserv — together contributed about a third of the Sensex’s total gains yesterday as the former jumped 3.6 per cent while the latter soared 8 per cent.

The sharp upmove was triggered in the stocks after market regulator Sebi gave in-principle approval to Bajaj Finserv to sponsor a mutual fund.

Consequently, while the company’s stock hit a fresh record high of Rs 16,590, it’s sister firm Bajaj Finance overtook State Bank of India in market-capitalisation.

Going forward, technical charts suggest Bajaj Finserv can hit Rs 20,000-mark in weeks ahead as long as it defends Rs 14,000-level.

Bajaj Finance, meanwhile, is eyeing Rs 8,000-mark with support placed at Rs 6,600.

Now, coming to today’s session, volatility may remain high ahead of the monthly F&O expiry slated for tomorrow. Further, flow around Covid-19 and vaccination drives, foreign fund flow, and global trends may guide the markets’ trajectory.

Among stock-specific triggers, shares of Bharti Airtel may remain in focus as the Supreme Court has granted relief to Airtel and has restrained DoT from encashing Airtel’s Bank Guarantees.

That apart, Wipro has won a strategic multi-year contract to partner with E.ON in their digital transformation journey in the financial area.

Lastly, CARE Ratings has revised its outlook on Dollar Industries’ long-term facilities from Stable to Positive.

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