Nifty, Sensex open flat, experts say yesterday's rally was due to FIIs buying which is difficult to sustain

Mumbai (Maharashtra) [India], January 3 (ANI): Indian stock markets on Friday opened almost flat while maintaining movement towards green as other Asian markets rallied.
The Nifty 50 index opened at 24,196.40 points with a gain of 7.75 points or 0.03 per cent, while the Sensex index opened at 80,072.99 points with a gain of 129.28 points or 0.16 per cent.
Experts noted that the market performance on Thursday was due to FIIs buying, but with the current situation of a strengthening dollar, it is difficult to sustain FIIs investment. Therefore, markets may follow moderate movement until the major corporate earning events.
"The uncanny ability of the market to surprise was evident in yesterday's massive 445 point rally in Nifty. Largecaps outperforming smallcaps is a positive signal and may continue. However, it is too early to conclude that FIIs will continue to buy. With dollar index at 109.25 and the U.S. 10-year yield at 4.56 per cent the macro construct is not favourable for sustained FII buying. Impressive pick up in deposit growth augurs well for banking stocks which are fairly priced" said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
In the sectoral indices, Nifty Media led in gains with a surge of 1.4 per cent, while Auto, IT, and Healthcare index shares opened under pressure, and other sectors gained.
In the Nifty 50 list, 29 stocks opened with gains, while 21 shares declined at the time of filing this report. The top openers of the day in Nifty 50 include ONGC, HCLTech, SBI, Trent, and Mahindra and Mahindra. Top losers include Hero Moto, Infosys, TCS, Asian Paints, and Wipro.
"Nifty had its best day since Nov. 22 and also managed a close above the Nov 19 gap-down level of 24150 in a shot-in-the-arm for tactical bulls. For the second successive time, the mid-December break of the 200-day average turned out to be a bear trap. That said, follow through here is key, with an immediate hurdle at 24250 and critical resistance at 24306. Supports lie at 24000 with an extension at 23830. Seasonally speaking, based on the last one year of data, Friday has been the best day of the week for the nifty - the index has gained 0.2 per cent on average with a 60 per cent win-rate over this period" said Akshay Chinchalkar, Head of Research, Axis Securities.
In other Asian economies, Japan's market remained closed for New Year, while other markets rallied on Friday. Hong Kong's Hang Seng surged more than 1 per cent, Taiwan Weighted gained 0.96 per cent, South Korea's KOSPI jumped 2 per cent, while China's Shanghai Composite declined at the time of filing this report. (ANI)