Sensex nifty open lower, snap three-day strong rally; Paytm shares tumble sharply
The stock market started Thursday’s trading session on a weak note, snapping a three-day winning streak in which both the benchmark indices registered massive gains.
The S&P BSE Sensex was down 194.15 points to 69,459.58 at around 9:43 am, while the NSE Nifty50 fell 43 points to 20,894.70. The broader market indices also fell in line with the benchmarks.
Major sectoral indices such as Nifty Bank and Nifty Financial Services started off the trading session on a weak note, while Nifty Pharma, Nifty Auto and Nifty Realty provided some support to the markets.
The top five gainers on the Nifty 50 were Adani Ports, Dr Reddy’s, Adani Enterprises, Power Grid and SBI Life. On the other hand, the top losers were ONGC, HUL, Bharti Airtel, ICICI Bank and Bajaj Finance.
Meanwhile, shares of One97 Communications tumbled as much as 20 per cent in early trade after the company said it plans to cut back small loans and focus on high-ticket lending.
Ahead of the market opening, Aditya Gaggar, Director of Progressive Shares, said, “At record levels, the Index has made a DragonFly DOJI candlestick pattern which generally indicates a reversal of trend, and an early indication from GIFT Nifty also hinting toward a tepid opening.”
“A close below 20,850 will confirm that a short-term top has been made. The immediate resistance is placed at the psychological level of 21,000 while on the downside, 20,850 will act as support,” he added
Gaggar went on to added that the the auto and metal sectors “need to breathe and can go in time or price-wise correction”.
“The same stands for the energy sector as it has formed a DOJI candle at a record level with a reading of 90 in RSI which is an extremely overbought condition. The sectors which look strong on the technical front are FMCG and IT as both of them have given a breakout from their congestion,” he added.