In a volatile trading session on Wednesday morning, Sensex and Nifty started in the green but went deep in red just minutes after the opening bell.
In a volatile trading session on Wednesday morning, Sensex and Nifty started in the green but went deep in red just minutes after the opening bell. S&P BSE Sensex opened 60 points higher but then slipped over 100 points. Nifty 50 was just shy of the 11,200 mark when trading began but went down to sit around the 11,150 mark soon after. The majority of the Sensex constituents were in the red. Hindustan Unilever, HDFC and HDFC Bank were dragging the index lower. Analysts had warned that stock markets could witness profit booking after surging higher for five straight days till Tuesday.
Broader markets slip: Nifty 50 slipped to sit around the 11,150 mark along with it went broader markets all slipping into the red. However, mid-cap indices outperformed the benchmark. Nifty Midcap 50, Nifty Midcap 100, and Midcap 150 were all trading flat.
Volatility surges: Volatility index India Vix was up 2% on Wednesday morning. India Vix ended yesterday’s trading session at 24.2 points and scaled higher to 25 points today morning.
Top Sensex movers: Axis Bank was the top gainer on Sensex opening 8% higher, followed by ITC, Bajaj Finserv, and Reliance Industries. The majority of the banking stocks were down in the red after gaining momentum in the previous trading sessions. HUL, State Bank of India, and IndusInd Bank were the worst-performing stocks.
Stocks touching 52-week high: Even though stock markets were in the red, seven S&P BSE 500 stocks were seen surging, and among them was Reliance Industries Limited, trading at Rs 2,000 per share. Other stocks were Power India, MCX, Laurus lab, JK Cement, Hathway, and Dixon.
Technical view: “The important level to watch out for on the upside is 11150 – we need to keep closing above this level in order to achieve the next target which is around 11500. The markets may want to test the 11150 a few times before taking off. The overall trend continues to remain positive. The support for this market is now at 10550. One can look at entering long positions when the Nifty attempts to test these levels. The risk is to reward ratio would then be favourable,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.