Sensex and Nifty started the week’s initial trading session with gains but failed to carry that momentum for the entire day, ending the session with losses.
Sensex and Nifty started the week’s initial trading session with gains but failed to carry that momentum for the entire day, ending the session with losses. S&P BSE Sensex closed 97 points lower while the Nifty 50 was below the 11,450 mark. HCL Technologies, TCS, Infosys, Tech Mahindra were some of the best performing stocks. Some analysts believe that the sell-off could have been aided by the higher valuations, while some think that investors resorted to selling equities as penalty on non-collection of margins during trade would resume soon. Sensex dived nearly 470 points from the day’s high.
Small cap, midcap stocks shine: While the benchmarks ended the day lower, smallcap and midcap stocks grabbed the limelight on Monday. “The Broader Markets stole the show today amidst volatile trade due to covid cases and margin penalty worries. IT and Pharma led the rally as several Small & Midcap stocks registered smart gains today despite the clarifications put out on Multi-Cap Schemes of Mutual Funds,” said S Ranganathan, Head of Research at LKP Securities.
IT stocks gain: With HCL Technologies gaining massively during the day on the back of strong outlook for the quarter, other IT companies were also seen surging. TCS, Infosys, and Tech Mahindra were all top gainers on Sensex. The Nifty IT index gained 4.44%.
Global watch: Sensex and Nifty ended with losses but Asian peers did not. Hang Seng and Shanghai Composite ended in the green. “Asian markets pushed higher Monday as investors crept back after a recent sell-off, with coronavirus vaccine hopes given a boost and traders looking ahead to the Federal Reserve’s latest policy meeting,” said Deepak Jasani Head of Retail Research, HDFC Securities.
Technical take: “We were unable to sustain above the 11550-11575 levels which are a little concerning. Even if it were to take a day or two and then get past those levels, we are in bullish territory. That would take us back to 11800 and thereafter towards 12000. The support for the Nifty is at 11300,” said Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.