Opening Bell: Sensex, Nifty trade tepid on cautious sentiments; RIL, GTL Infra, Aban Offshore stocks gain
Nifty registered a new high of 11761 but failed to capitalize on the same. A sustainable move below the low of 11,629 might drag the index towards 11,550 mark and this could start the profit booking selling.
On account of cautions sentiments in the domestic investors that triggered profit booking yesterday the Indian indices trade sideways in the early morning session on Thursday. The BSE Sensex nudged 26 points up to 38,904 while the 50-stock Nifty index crawl 2 points higher to 11,646 levels. Stock like GTL Infra, Reliance Industries and Aban Offshores were among the gaining stocks.
Giving idea about the markets Mehul Kothari, Senuior Technical Analyst at IndiaNivesh Securities told Zee Business online, "In line with our view, the index Nifty registered a new high of 11761 but failed to capitalize on the same. Very soon after posting the new peak, we witnessed sharp selling in the second half. This too was very much in line with our expectations. At this juncture, we are observing a bearish reversal candle on the daily chart. A sustainable move below the low of 11,629 might drag the index towards 11,550 mark and this could start the profit booking selling."
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Kothari of IndiaNivesh went on to add, "On the other hand, a move above 11,761 will bring the markets in uncharted territory where another 200 to 300 points upside in Nifty cannot be ruled out. However, the selling in broader markets during the last couple of sessions hints towards some kind of distribution in the market. Thus, it’s better to stay light during the coming upside since that could possibly be the last leg of the rally. Traders are advised to avoid over-leveraged positions and maintain strict stop loss on positional trades since the markets are now entering the month of general election wherein we might witness the surge in volatility."
IT stocks bleed maximum as the BSE IT index lost around 0.85 per cent in early morning trade today. IT major HCL Technologies crashed around 2.2 per cent, shares of Genesys International Corporation went down near 3 per cent, shares of Datamatics Global Services and D-Link (India) went down by more than 1.5 per cent while Infosys went down more than 0.6 per cent.
Following the IT stocks, tech stock tooled the bear run on Dalal Street. The BSE Tech index went off more than half a per cent today in early session. Tech major Vodafone Idea went down near 2.8 per cent, Wipro went off more than 2 per cent, Just Dial scrip went southward 1.25 per cent, NIIT Technologies and MphasiS shares went off near 1 per cent.
Asian shares held near an eight-month peak on Thursday as investors awaited developments on Sino-US trade talks, with both sides appearing closer to signing a deal and improved risk appetite weighing on safe-haven assets like the yen.
MSCI's broadest index of Asia-Pacific shares outside Japan took a breather after five straight days of gains took it to its highest since late August. Chinese shares started firmly with the blue-chip index up 0.9 per cent. Hong Kong`s Hang Seng index was a tad softer.