Indian equity indices opened Monday’s trading session on a flat note. The NSE Nifty 50 opened flat at 25,945. The BSE Sensex opened flat at 84,686.
The Bank Nifty opened 29 points or 0.05% lower at 58,904. Similarly, the small and mid-cap stocks opened in the red. The Nifty Midcap opened 18 points or 0.03% lower at 59,983.
“As pointed out yesterday, inability to float above 26,050 has set in motion, downsides aiming 25,935-25,850. However, we expect attempts to pull back early in the day, though we will wait for atleast a push above 25,970 – 26,000 to play such upswings,” said Anand James, Chief Market Strategist at Geojit Investments.
On Monday, after a muted open, the market slipped below 26,000, and post-breakdown, intraday selling pressure increased. A bearish candle on daily charts and a lower top formation on intraday charts indicate further weakness from the current levels, said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
“We are of the view that 26,000 or the 20-day SMA will be the key resistance zone for day traders. As long as the market trades below this level, weak sentiment is likely to continue. On the downside, it could slip to 25,850–25,800. On the flip side, above 26,000, the market could bounce back up to 26,100. Further upside may also continue, which could lift the index to 26,150,” said Chouhan.
The year-end trend, though weak, doesn’t indicate a directional change in the market. The advance-decline ratio was far in favour of declines, and this led to a decline in Nifty by 100 points yesterday. But it is important to note that this decline happened on thin volumes, said VK Vijayakumar, Chief Investment Strategist at Geojit Investments.
A clear directional change will happen only early in the new year when large institutions are back in action. It would be better for investors to watch the market now and wait for new triggers and new directional moves. However, weakness in the market can be used to nibble at high-quality large caps, added Vijayakumar.
Let’s take a look at the key factors to watch out for today’s trading session
Early gainers and laggards
In early trade, among the Nifty 50, top gainers at this hour were Shriram Finance, Tata Motors Passenger Vehicle, BEL, Tata Consumer Products and Grasim Industries. On the flip side, the key laggards in the Nifty 50 pack included Eicher Motors, Eternal (Zomato), Apollo Hospitals, Tata Steel, and Larsen & Toubro.
Major movers on Tuesday
The stocks that were the major movers in the opening trade included HDFC Bank, Infosys, Tata Steel, Hindalco Industries, and Kotak Mahindra Bank, which were the major movers in the morning trade.