Benchmark indices BSE Sensex and NSE Nifty end in flat after a volatile session of trade. Sensex fell over 500 points intraday before recouping losses to end at 62,130, while Nifty gave up the 18,500 level. The broader markets shifted from losses to gains intraday, while the sectoral indices traded between green and red. The Nifty IT index dropped 0.4% in trade, while Nifty PSU Bank rose 1.4%. “A tepid start-off in the domestic market was flattened due to a recovery in banking, metals, and oil & gas, while continued selling in IT stocks weighed on the indices. Key inflation numbers are expected to soften from the previous month, owing to a moderation in food prices. Extending the stock market route, the global markets remained fragile as rate decisions by major central banks took center stage,” said Vinod Nair, Head of Research, Geojit Financial.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
The Nifty stepped into a short term consolidation phase in the last week. As a result, it opened gap down on December 12. On the downside, the bulls moved in to offer support as the index inched towards the short term support of 18300, which is 78.6% retracement of the recent up move. On the other hand, recovery for the day was restricted near 18500. Overall structure shows that the Nifty can have a short term consolidation in the range of 18300-18650. The Bank Nifty, on the flip side, is maintaining its positive trajectory.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
After retreating sharply in early trades, both benchmark indices recouped most of their losses but traded range-bound in a listless trading for almost the entire trading session, as investors mostly stayed on the side lines ahead of the inflation data and the US Fed meeting later this week. More clarity will emerge post the US Fed meeting, which would determine the trend in the near term.