After starting on the backfoot on Monday amid the Hindenburg-SEBI row, Indian benchmarks – BSE Sensex and NSE Nifty – pared initial losses to end Monday’s choppy session on a flat note.
Sensex shed 56.99 points or 0.07 per cent to settle at 79,648.92. Earlier, the index fell 0.60 per cent to an intra-day low of 79,226.13. Meanwhile, Nifty50 dipped 20.50 points or 0.09 per cent to 24,345.55. The index fell 0.63 per cent to an intra-day low of 24,212.10.
30 out of the 50 constituent stocks of Nifty50 ended lower, with Adani Ports, NTPC, Dr. Reddy’s Labs, Britannia, and Adani Enterprises being the top laggards, falling by up to 2.33 per cent.
On the BSE, 18 out of the 30 listed stocks of the Sensex ended in the red, with Adani Ports, NTPC, and Power Grid being the top laggards, with a fall of up to 2.02 per cent. The fear index, India VIX, ended higher by 3.47 per cent at 15.87 points.
Among the broader indices, Smallcap and Midcap settled with marginal gains. Meanwhile, among the sectors, Media, PSU Bank, Auto, FMCG, Pharma, and Healthcare indices ended lower, while others settled in the green.
Anand James, Chief Market Strategist, Geojit Financial Services, said: “Momentum is missing and VIX was seen swinging making directional trades difficult. Nifty did have a triangular consolidation at the bottom, seen as early signs of reversal, but is yet to shake off the bears, as evidenced by the lack of follow through momentum on Friday despite a peek above 24400. This was surprising, but could be attributed to the near 400 point gapped up opening on Friday, leaving little fuel left to propel further upsides on the last working day of the week. It is fair to say that the trend is evenly poised. Nifty now needs a push above the 20 day SMA now at 24420, to aim for 24540 initially and embark on a 25800 trajectory, but such prospects will not be brought into consideration today if unable to float above 24360. Downside marker is now at 23975, which is where both the Bollinger band extremity and 50 day SMA has converged. An attack on this region will expose the 23670 and the low 23000s, but prospects of the same appear low, given low momentum.”
Global Cues
Asian stocks started the week on a quiet note on Monday, with Japan’s holiday reducing one source of recent volatility. Investors are now focused on upcoming US and Chinese economic data for insights into global growth prospects.
The S&P 500 rose on Friday and remained steady for the week after recovering from recession-induced losses. Gains were led by the tech sector, including Take-Two Interactive and Expedia. Investors are now eyeing economic indicators and the next Federal Reserve meeting for potential rate cuts in September.
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