Opening bell: Sensex, Nifty trade caution on growing anxiety in US-China trade talks
The 50-share Nifty went down by 6 points to 10919, a level that would give a psychological relief to the bulls trading at the Indian indices.
On account of mounting signs of anxiety in Sino-US trade talks, the BSE Sensex went down 37 points to 36,407 after making a high of 36,521 on Wednesday. The 50-share Nifty went down by 6 points to 10919, a level that would give a psychological relief to the bulls trading at the Indian indices. Metal, telecom, auto and infra sector stocks were in the red zone while shares from oil, energy and IT sector were in the green zone.
Shares of Inox Wind, Bombay Burmah, Coffee Day Enterprises and Jubiliant Life Sciences were among the top gaining stock on Wednesday while IL&FS Transportation, ICICI Pru and IIFL Holdings were among the top losing stocks. Shares of Inox Wind went up by 3.64 per ccent, Bombay Burmah was up by 2.9 per cent and Coffee Day Enterprises shares were up by around 3.1 per cent. In oil and gas sector BPCL shares went up by 1.2 per cent while GAIL, HPCL and IOCL went up by around 0.4 per cent. Energy major Reliance Industries shares wer n higher side logging 0.55 per cent gains.
Mehul Kothari, Senior Technical Analyst told Zee Business online in a written statement, "Post breakout from 10930 mark, yesterday the index faced some profit booking from higher levels but managed to sustain above 10900 mark. We reiterate our stance that pattern wise there is a clear breakout which indicates potential upside towards 11000 – 11100. In addition, the daily ADX (14) indicator has signalled a positive crossover which might bode well for the bulls. Thus we maintain our stance that the upside could continue in upcoming sessions." Kothari went on to add, "At the same time, we would like to mention that 11100 - 11200 still remains an important resistance where traders should start booking their long positons for the time being. Meanwhile, 10840 – 11000 levels are likely to act as intermediate support and resistance respectively in the coming session. Traders are again advised to avoid over leveraged positions."
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Asian stocks too went down on Wednesday on mounting signs of slowing global growth and anxiety over a yet-unresolved Sino-US trade dispute.
Japan's Nikkei dropped 0.7 per cent while MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.1 per cent.
On Wall Street, the S&P 500, the Nasdaq and the Dow all posted their biggest one-day percentage drops since January 3 on Tuesday. The S&P lost 1.42 per cent.
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