Equity benchmarks traded firm with marginal gains in mid-session on Thursday, with the Sensex rising 91.22 points, or 0.12 per cent, to 74,855.45 and the Nifty 50 gaining 24.30 points, or 0.10 per cent, to 23,455.80 at 12.46 pm. Market experts said elevated crude oil prices above the $100-per-barrel mark and persistent geopolitical tensions continued to keep risk appetite subdued.
In today’s session, the BSE Sensex climbed 145 points from the previous closing level, while the NSE Nifty 50 gained over 63 points.
Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities, said the frontline indices had extended their decline to their lowest levels since the second week of June as cautious sentiment continued to dominate the market. He said the persistent rise in crude oil prices remained a key concern, with crude futures gradually inching closer to the $100-per-barrel mark.
“Elevated energy prices, coupled with ongoing geopolitical uncertainty, have weighed on risk appetite and kept market participants on the defensive,” Shah said, adding that volatility is likely to remain elevated in the near term until there is some moderation in crude prices or an improvement in the broader geopolitical environment.
Nifty levels
According to Shah, the 23,240–23,260 zone will act as a crucial support for the Nifty, while resistance lies in the 23,560–23,580 zone. If the index slips below 23,245, the next support is placed at 23,070–23,100.
On the upside, a surge above 23,580 could extend the rally towards 23,720, Shah said.
On the options front, meaningful call writing was witnessed across the 23,500 and 23,600 strikes. On the put side, 23,400 had substantial open interest, followed by the 23,300 strike.
The Nifty’s Advance Decline Ratio stood at 19:31. For the Sensex, Shah pegged support at 74,300 and resistance at 75,100.
Sectoral trend
Smallcaps outperformed and remained resilient with a 0.14 per cent uptick, while the Nifty Midcap 100 dipped 0.35 per cent.
The majority of sectoral indices traded in the red. The Media index outperformed, while banking and financials, realty, and oil & gas remained resilient. Pharma, Metal, Healthcare and auto led the losses, while
Top movers today
Among Nifty 50 stocks, Power Grid, HDFC Life, Axis Bank, ONGC and Tech Mahindra were the top gainers in mid-session. HCL Tech, Tata Steel, Hindalco, IndiGo and were the major laggards.
In the midcap basket, Tata Investment, Exide Industries, Persistent Systems, IREDA and Blue Star surged 2-4 per cent, while Dixon Tech, GVT&D and Aurobindo Pharma fell 2-4 per cent.
Among smallcaps, Swan Corp, , Welspun Corp, KEC and Redington gained 4-12 per cent, while MRPL, IFCI, Afcons, Urban Company and Sai Life Sciences fell 3-4 per cent.
A total of 3,496 stocks were traded on the NSE at the time of writing. Of these, 1,598 advanced, 1,776 declined and 122 remained unchanged. As many as 107 stocks scaled their 52-week highs, while 93 hit 52-week lows. A total of 105 stocks scaled the upper circuit and 72 hit the lower circuit.
Global cues
Asian markets traded lower.
On Wednesday, Wall Street also remained weak, with the Dow Jones losing another 400 points on Wednesday after a 600-point decline on Tuesday. The Nasdaq ended 0.6 per cent lower, while the S&P 500 lost 0.5 per cent.
The US Treasury will buy back $6 billion worth of longer-dated bonds, matched by an equal issuance at the shorter end of the tenor. The amount is lower than market expectations, and bond yields rose further, with the 10-year yield hitting 4.85 per cent.
The ECB is scheduled to announce its interest rate decision on Thursday evening, with a 25-basis-point rate hike expected. US inflation data over the next two days will also be closely tracked.
Looking ahead, investors will closely watch upcoming US inflation data for fresh clues on the Federal Reserve’s policy trajectory, Shah noted.