Opening Bell: Sensex, Nifty trade subdued on profit booking in banking stocks, mixed Wall Street cue
The Indian indices are around its peak and some profit booking from now is expected. The Nifty index may witness resistance at around 11,350 levels, say experts
On account of the selloff in banking stocks after Nifty Bank index rose to its all-time high on Tuesday and mixed trade session at the Wall Street, the Indian indices trade subdued in the early morning session. The BSE Sensex went down 35 points to 37,500 levels while the 50-stock Nifty index slide 12 points to 11,292 levels. After breaking its all-time high levels on Tuesday the Nifty Bank index went down 33 points to 28,410 levels, which is still above its earlier all-time high of 28,389.
Speaking on the market outlook and strategy than an investor can adopt in current market scenario Simi Bhaumik, a SEBI registered technical equity analyst told Zee Business online, "The Indian indices are around its peak and I am expecting some profit booking from now. The Nifty index may witness resistance at around 11,350 levels and for intraday traders buy on dips should be the right strategy. Any dip of 100 to 150 points in the markets should be considered a buying option for the traders."
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After witnessing heavy buying in the banking stocks on Tuesay, Wednesday intraday trade witnessed some profit booking in the banking sector. Banking major Kotak Mahindra Bank went down by around 1 per cent, Yes Bank scrip was off by around half a per cent, ICICI Bank counter went down by around 0.4 per cent, while Bank of Baroda and Axis bank went down by around 0.2 per cent. Infra stocks too witnessed some correction as the index major Spicejet share corrected around 4.8 per cent, Aban Offshore shares went off by around 1.2 per cent, Ashoka Buildcon shares went down by around 1.3 per cent, GVK Power & Infrastructure were off by around 1.6 per cent, Power Finance Corporation counter went southward by around 1.8 per cent while Tata Communications shares went down by near 1.3 per cent.
Asian share markets got off to a subdued start on Wednesday after a mixed finish on Wall Street, while a frazzled pound awaited its fate ahead of yet another make-or-break parliamentary vote on Brexit.
MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.1 per cent in slow trade. Japan`s Nikkei dipped 0.3 per cent and Australia's main index slipped 0.4 per cent.
E-Mini futures for the S&P 500 were off 0.08 per cent.
Risk appetite had been dampened after British lawmakers crushed Prime Minister Theresa May's European Union divorce deal, forcing parliament to decide within days whether to back a no-deal Brexit or seek a last-minute delay.