Markets in green; Zomato sees bumper stock market debut!

Market Update at 10:10 AM:The key benchmark indices eked out modest gains during the early deals on the final trading session of the week. Nifty and Sensex have gained 0.15 per cent & 0.14 per cent, respectively.   

The broader market is also trading in green with Nifty Midcap 100 and Smallcap 100 advancing 0.51 per cent and 0.08 per cent, respectively.   

All eyes were on the listing of food-tech start-up Zomato, which has made a strong debut and it is seen trading near the day’s high.   

On Thursday, Nifty started off the session with a massive gap-up and throughout the day, it remained in positive terrain and settled with gains of 1.23 per cent. With this, Nifty erased most of the losses of the last two trading sessions.   

The price action of the day formed a sizeable bullish candle and with this, Nifty negated its lower high & lower low formation of the prior two trading sessions. Nifty, after staying below its 20-DMA for the last couple of sessions, reclaimed its 20-DMA. Though it has moved above its 20-DMA, it still languishes in the middle of the broad consolidation range.  

Lately, we have seen that every time Nifty moves near the lower end of the range, there is some good news, which leads to buying. On the other hand, as and when Nifty moves near the upper end of the range, some concerns pop up and along with it, selling also emerges.  

It has now been over a month since the time Nifty was witnessed playing this range game from 15,450-15,950. Going ahead, a breakout on either side of the range would result in a directional move. With the big boy of the index scheduled to announce its earnings on Friday, we could see the range breakout in the coming days.  While on the downside, the 20-DMA could act as an immediate support level. 

With India VIX declining as much as 10 per cent on Thursday, this decline in volatility indicates that the atmosphere of fear is a thing of past and risk-on mode is back on D-Street.   

Keep a close eye on mid-cap and small-cap stocks, which are coming out with its earnings in the coming as market participants are clearly rewarding the stocks, where the earnings momentum is strong and growth visibility remains robust.