Nifty, Sensex Trade Lower As Infosys, RIL Decline: Midday Market Update

The NSE Nifty 50 and BSE Sensex were trading lower on Wednesday, giving up record high gains from the previous session as Infosys Ltd., and Reliance Industries Ltd. dragged. India's benchmarks emerged as some of the top losers among Asian share indices during midday, while most of the markets gave up early gains. The Hang Seng and CSI 300 continued to trade strong following China's stimulus package announcement.

As of 12:30 p.m., Nifty 50 was trading 4.25 points, or 0.21% lower at 25,883.35, and the Sensex was down 133.21 points, or 0.16% at 84,786.84.

Intraday, Nifty declined 0.27% to 25,871.35, and Sensex fell 0.20% to 84,743.04.

The current week low of 25,850 levels is the immediate support on the downside, followed by 25,500, which is highest put open interest strike. RSI has been overbought on multiple shorter term time frames and could witness some retracement from the higher range, said Vikas Jain, head of research, Reliance Securities Ltd.

"The highest call OI has moved higher to 26,200 strikes, while the downside the highest put OI is at 25,700 for the monthly expiry," he said.

Shares of HDFC Bank Ltd., Power Grid Corp., Axis Bank Ltd., ICICI Bank Ltd., and NTPC Ltd. cushioned the fall in Nifty.

While those of Infosys Ltd., Reliance Industries Ltd., Tata Motors Ltd., Hindustan Unilever Ltd., and Kotak Mahindra Bank Ltd. dragged the index.

On NSE, seven sectors out of 12 declined and five sectors advanced. The NSE Nifty IT declined the most, and the NSE Nifty Media rose the most.

The NSE Nifty Auto rose 0.70% to a fresh high of 27,108.45, led by gains in Apollo Tyres Ltd., and Mahindra & Mahindra Ltd.

Broader markets underperformed benchmark indices. The NSE Nifty Midcap 150 was 0.63% lower, and the NSE Nifty Smallcap was 0.39% lower.

The Nifty Midcap 150 scaled a fresh high of 22,515.40 earlier in the day.

The BSE Midcap was trading 0.48% lower and the BSE Smallcap was 0.15% down.

On BSE, 13 out of 20 sectors declined, and seven advanced. The BSE FMCG declined the most, while the BSE Utilities rose the most.

Market breadth was skewed in the favour of sellers. Around 2,109 stocks declined, 1,675 stocks rose, and 132 stocks remained unchanged on BSE.