Domestic equity markets kicked off the week with some positivity and settled higher on Monday, snapping the two-day losing streak. However, the fag-end selling in the markets dragged the markets lower and trimmed the gains of headline peers. Uncertainty across the globe weighed on traders’ sentiments.
For the day, BSE’s barometer Sensex added 126.76 points, or 0.22 per cent, to settle at 57,653.86, while The 50-share pack Nifty50 advanced 40.65 points, or 0.24 per cent, to 16,985.70. Broader markets underperformed the headline peers BSE midcap and smallcap indices tanked up to 2 per cent. Fear gauge India VIX declined more than a per cent to 15.44.
The Nifty witnessed an extremely volatile day of trade today. It witnessed sharp swings in both directions and ultimately managed to close in the green by about 40 points. On the daily charts we can observe that the Nifty traded within the range of the previous trading session, said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.
“The daily momentum indicator has a positive crossover and thus we shall continue to maintain our positive outlook on the index. On the upside initial targets are placed at 17,200 and above that, it can extend higher to 17,450-17,500. The crucial support zone is placed at 16,910-16,870,” he said.
Sector-wise, Nifty Realty and Media indices dropped more than a per cent, each, followed by Nifty Auto index. On the contrary, the Nifty Pharma index topped among the gainers, whereas Nifty FMCG and Banking index posted some decent gains.
On the Nifty 50, Grasim Industries and Reliance Industries surged 2 per cent, each, followed by Cipla. Divis Laboratories, Maruti Suzuki, Sun Pharmaceuticals and State Bank of India a per cent each. On the downside, Adani Ports shed 2 per cent, each, whereas SBI Life Insurance, Power Grid, Adani Enterprises, M&M and NPTC settled a per cent lower, each.
After a range-bound movement, the market ended mixed with marginal gains in large caps while mid and small caps had losses, said Vinod Nair, Head of Research at Geojit Financial Services.
“Some certainty was seen in domestic banks and large caps due to ease in the US & European market aided by reports on the acquisition of SVB by US lender First Citizens Bank. However, the investors continue to remain cautious as stress in the US and European financial systems makes their central banks actions complex,” he said.
A total of 3,788 shares were traded on BSE on Monday, of which 2,708 settled lower. 926 stocks ended the session with gains, while 154 shares remained unchanged. A total of 190 shares hit their upper circuit, whereas 377 tested the lower circuit levels for the day.
In the broader markets, Navkar Corporation hit an upper circuit of 20 per cent, whereas Vijaya Diagnostic Centre rose 18 per cent on the back of heavy trading volumes. Morepen Laboratories surged over 8 per cent after a successful USFDA inspection of API facility at Baddi. TTK Healthcare rose 5 per cent after Sunil Singhania’s Abakkus picked up a stake in the company.
On the downside, Aditya Birla Sun Life AMC dropped more than 8 per cent. ITI also dropped 8 per cent amid the heavy trading volumes. Swan Energy and Trident shed 7 per cent, each, whereas Indian Energy Exchange was down 6 per cent.
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