India’s Sensex and Nifty stock indexes broke two sessions of gains to end a little lower today, trailed by banks and heavyweights Reliance Industries. But a rally in IT stocks capped losses. The NSE Nifty 50 Index closed 0.21% lower at 11,440. The S&P BSE Sensex finished about 100 points lower at 38,756 after hitting 38,573 at the day’s high.
The main private sector lender HDFC Bank Ltd fell 1.9% and was the main drag on indices, while ICICI Bank Ltd fell 1.8%. The Nifty Bank index slipped 1.7%.
However, the BSE midcap index rose 1.5% while the smallcap index jumped 4% after the market regulator said multi-cap mutual funds should invest at least 25% each in large, mid and small cap stocks.
Asian markets pushed higher on Monday as investors slumped after a recent sell-off, with coronavirus vaccine hopes boosted and traders bracing for the latest Federal Reserve policy meeting. Stock valuations, Brexit-related tensions and uncertainty surrounding the US presidential election are keeping gains in check, ”said Deepak Jasani, head of retail research at HDFC Securities.
IT company HCL Technologies Ltd was the biggest percentage gainer on Nifty, jumping 10.2% to a record high after improving revenue and operating margin prospects for the September quarter.
Reliance Industries finished down 0.7% after hitting a record earlier in the session.
Here’s what analysts said about today’s market performance:
Siddhartha Khemka, Manager – Retail Research, Motilal Oswal Financial Services Ltd
“In the future, the market should consolidate in the short term with a positive bias. All eyes would be on central banks around the world as the US Fed and its peers the European Central Bank, Bank of England and Japan meet this week. Investors are also reportedly looking at developments regarding the Covid vaccine and the UK Brexit vote. Mid-cap and small-cap companies have been relatively outperforming during CY20 and the momentum may continue in the near term. Thus, any weakness in the market should be viewed as a buying opportunity to add quality stocks to the portfolio, as the overall long-term market trend remains positive.
Technically, Nifty needs to hold above 11330-11350 zones, to see an upward movement towards 11550-11600 zones while on the downside, medium term support exists in 11200-11180 zones. “
Shrikant Chouhan, Executive Vice President, Technical Equity Research at Kotak Securities
“Profit bookings in the last hour of trading pushed the market down. The Indian market opened with a positive spread amid positive global and domestic indicators with the Nifty 50 index touching 11,568 levels in the first few hours of trading, however, reserving profits in heavyweights like Reliance Industries in the second half saw the index give way far from all of its intraday gains to close in red. Bank-Nifty also closed at the lowest level of the day. The decline in US equity futures also dampened sentiment in our market. For the next two sessions, the Nifty 50 Index could remain tied to the range, hovering between 11,300 and 11,600 levels. With the Fed meeting this weekend, the market will remain volatile with an emphasis on the currency and the dollar index. The trader should be careful when making breakout trades in the market. “
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
“We weren’t able to maintain above the levels of 11550-11575 which are a bit worrying. Even if it would take a day or two to then break above these levels, we are in bullish territory. It would bring us back. at 11800 and thereafter around 12000. Support for the Nifty is at 11300. “
Ajit Mishra, Vice President – Research, Religare Broking Ltd
“Markets usually see such volatile swings during the consolidation phase and it is no different this time. We reiterate our bullish but cautious approach to the markets and suggest accumulating quality stocks if there is a dip. Several themes are still playing well, so traders should line up their positions accordingly. Upcoming macroeconomic data and global market indices will remain the focus of concern. “