It was a volatile trading session on Wednesday as Sensex and Nifty gave their 5-day gaining streak.
It was a volatile trading session on Wednesday as Sensex and Nifty gave their 5-day gaining streak. S&P BSE Sensex danced between gains and losses the entire day and made an attempt to recover in the closing hour but failed to shrug-off all losses. Nifty 50 gave up the 11,150 mark. “We broke the 11150 on closing basis. The markets might want to test that level again. It is a crucial level and we need to close above that level as that might act as an important resistance in the short-medium term,” said Manish Hathiramani, Index Trader and Technical Analyst, Deen Dayal Investments.
Volatile session for equity markets: Volatility was back to scare investors on Wednesday as domestic indices moved between the red and green. Sensex opened at 38,1 78 points and reached a high of 38,199 points. During the trading session, a low of 37,601 was reached before closing at 37,871. India Vix was up 1.3% on closing.
Top gainers: Axis Bank maintained its position as the top Sensex gainer for the entire day. The private lender opened 8% higher on Wednesday only to lose half those again but at closing Axis Bank was up 7%. Titan Company was up 4%, followed by Power Grid, NTPC, and ITC. “Domestically, the private banking space gained on the back of earnings numbers from Axis Bank. However, Auto, IT and PSU Banks led the losses,” said Vinod Nair, Head of Research at Geojit Financial Services.
Midcap indices gain: While benchmarks Sensex and Nifty were down in the red, Nifty Midcap 50 and Midcap 100 ended the day with marginal gains. Mahindra and Mahindra Finance shares were up over 9% helping the index gain, followed by Chola Finance and Federal Bank.
Global stock markets: Global markets were weaker on Wednesday for a number of reasons. Hang Seng slipped over 2% while stock markets in Japan, Malaysia, and Singapore were all in the red. “World shares were mostly lower on Wednesday on renewed worries over surging coronavirus caseloads in many countries. Adding to this was the flareup of tension between the US and China as the former has ordered China to close its consulate in Houston, Texas, by Friday – a move described as “political provocation” by Beijing,” said Deepak Jasani, Head Retail Research, HDFC Securities.