Sensex, Nifty register muted opening amid weak global cues`

By Koustav Das: Benchmark stock market indices opened I negative territory on Friday amid a decline in foreign markets due to concerns over further monetary policy tightening in the US.

The S&P BSE Sensex fell 0.25 per cent to 65,623.40 as of 9:15 am, while the NSE Nifty 50 was down 0.32 per cent at 19,435.30. Broader market indices also fell due to weaker global cues.

The top sectoral indices in early trade were Nifty Media, Nifty Realty and Nifty Oil & Gas. Heavyweight indices like Nifty Bank, Nifty Financial Services and Nifty IT were trading in the red.

The top five gainers on the Nifty 50 were Titan, Mahindra and Mahindra, Axis Bank, BPCL and Tata Consumer Products. On the other hand, the top drags were Cipla, Divi’s Laboratories, Apollo Hospitals, Power Grid Corporation and Bajaj-Auto.

Riches Vanara, technical And derivatives analyst, Stoxbox, “On the global front, US markets closed sharply lower on account of wide sell-off after data showing a strong labour market boosted bond yields and raised fears the Federal Reserve which will be raising interest rates.”

On the technical front, Vanara said, “Nifty in its previous trading session saw a muted opening, but gradually scaled higher to mark new high life-highs at 19,512. The move came on relatively higher volume and was ushered following a tight volatility compression in the previous two trading sessions.”

“With this the index currently trades at a distance of 3.2 per cent and 5 per cent away from its 21 and 50 DMA. The advance-decline ratio stood at 1.6, indicating a higher number of advancers. Going forward, the index has immediate support in the zone of 19,360-19,300 and it will be crucial that the index sustains above the zone on a closing basis to attract further bullish momentum,” Vanara added.

Meanwhile, Deven Mehata, research analyst at Choice, said, “The charts indicate that the Nifty may get support at 19,400, followed by 19,350 and 19,300. If the index advances, 19,500 would be the initial key resistance level to watch out for after a gap down opening, followed by 19,550 and 19,600.”

It may be noted that foreign institutional investors remain net buyers, while domestic investors sold shares.“Based on the above FII’s data markets are expected to continue the up-move. Hence every dip will be a buying opportunity,” Mehata said.

“Traders and investor can buy near the initial support near to 19,300 for new all-time highs with a stop loss close to 19100 levels which is also a strong base for Nifty. Along with Nifty there can be stock specific actions with a strong quarterly updates by the companies,” he added.

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