Opening Bell: Sensex, Nifty trade tepid on mixed global cues; RIL bleeds, RCom, SpiceJet stocks gain
Nifty is likely to remain flat to negative following the negative cues from Asian markets, but FIIs buying above Rs 2000 crores in cash market, will protect the major downside in the market.
On account of mixed global cues, the Indian indices halt its bull run on Wednesday after witnessing rally for six straight trade sessions. The BSE Sensex rose 7 points to 38,370 levels while the 50-stock Nifty index lost 2 points to 11,529 levels. The Reliance Industries stock which broke its all-time high recently witnessed some profit booking. The RIL stock went off by near half a per cent.
Prakash Pandey, Director & Head of Research at Fairwealth Group told Zee Business online, "Nifty is likely to remain flat to negative following the negative cues from Asian markets, but FIIs buying above Rs 2000 crores in cash market, will protect the major downside in the market, But for today we can expect volatility because of weekly options expiry." He said that SGX Nifty is indicating a Negative start for the Indian markets and Hong market is down by 200 points. Giving outlook about the Nifty index pandey said, "Nifty 11,000 put and 11,500 call having highest open interest and because of that Nifty is facing resistance around 11,500-11,540 zones."
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The BSE Sensex heavyweight Reliance Industries or RIL witnessed some profit booking as the stock is at its all-time high. Shares of RIL went off by around half a per cent to Rs 1367 pre stock levels. The BSE Realty index led the bulls by adding arpound 0.93 per cent in early morning trade. Realty majors Indiabulls Real Estate and Prestige Estates Projects Ltd went up by more than 3.7 per cent, DLF stocks shot up by around 2.8 per cent while Godrej Properties went up 2.75 per cent. Oberoi Realty Ltd counter surge near 1.75 per cent.
Capital goods stock Bharat Heavy Electricals Ltd shot up by near 3.5 per cent. In IT index, Infosys went up by near 1.6 per cent, Kellton Tech Solutions shares went up near 3 per cent, L&T Infotech was up 0.7 per cent, L&T Technology Services stocks rose 1.9 per cent, MosChip Technologies shares surge near 1.5 per cent while Rolta India stocks skyrocket around 4.95 per cent.
Power major Aban Offshore Ltd went up around 4.5 per cent, Reliance Communications shot up by around 10 per cent while SpiceJet counter added more than 5 per cent from its previous close.
Asian stocks got off to a cautious start on Wednesday, holding close to six-month highs on hopes the US Federal Reserve will stick to a dovish stance and unveil a plan to stop cutting bond holdings later this year. MSCI's broadest index of Asia-Pacific shares outside Japan ticked down 0.1 per cent from a six-month high touched the previous day. Japan`s Nikkei was also down 0.02 per cent. South Korea's Kospi crashed 1.09 per cent, Hang Seng went off by around 0.54 per cent, Shanghai index slide more than 1 per cent.