Equity markets began trading flat on Wednesday morning with banking stocks pulling benchmark indices lower.
Equity markets began trading flat on Wednesday morning with banking stocks pulling benchmark indices lower. S&P BSE Sensex was down over 100 points while the 50-stock Nifty was just holding on to the 11,200 levels at 10 AM. ONGC, Sun Pharma, and Hindustan Unilever were the top Sensex gainers. All banking stocks were trading deep in the red with most falling over 1% each. Analysts say that Nifty could face resistance from 11,306-11,322 band in the near future. Yesterday too Nifty climbed down from its intra-day high of 11,300.
Global cues: US stock markets ended in the red on Tuesday. Dow Jones was down nearly half a per cent. Asian equity markets were mixed on Wednesday morning. Shanghai Composite was up with gains along with Hang Seng, however, Nikkei 225 and TOPIX were down in the red. KOSPI and KOSDAQ were trading with gains.
Volatility climbs up: The fear gauge of the indices, India VIX was seen climbing higher to sit above the 20 levels as it surged over 1%. The India VIX opened at 19.78 before slipping down to 17.68 levels but soon moved higher.
Reliance Retail gets 3rd cheque:Mukesh Ambani’s Reliance Retail has now bagged a Rs 3,675 crore cheque from General Atlantic for a 0.84% equity stake. The deal values RIL’s retail venture at Rs 4.285 lakh crore, which is higher than the Rs 4.21 lakh crore valuation estimated by the previous two investors.
Technical take: “The Nifty is still below the 11350 level which means it is still within the bearish zone. It will turn bullish only when it is successful in closing above the 11350 levels. Until then traders could consider a favourable risk-reward ratio trade and look for opportunities to short the index at these levels for a target of 10800 and a stop loss above 11350,” said Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.