Nifty Off Day's High After Crossing 21,000: Midday Market Update
At 12:06 p.m., Sensex was 0.4%, or 262.71 points higher at 69,784.40, while Nifty was up 0.3%, or 63 points at 20,964.
Benchmark indices were off their highs through midday after the Nifty 50 crossed the crucial 21,000 mark and Sensex hit its fresh lifetime high as shares of Bajaj Finance Ltd., ITC Ltd., Mahindra & Mahindra Ltd., and Adani Enterprises Ltd.
HDFC Bank Ltd., Larsen & Toubro Ltd., and Infosys Ltd., however, drove gains in the benchmarks.
Both the Nifty 50 and the Sensex hit their fresh life highs of 21,006.10 and 69,888.33, respectively. At 12:06 p.m., the S&P BSE Sensex was 0.4%, or 262.71 points higher at 69,784.40, while the NSE Nifty 50 was up 0.3%, or 63 points at 20,964.
The Nifty 50 surpassed the 21,000 mark for the first time after Reserve Bank of India's decision to maintain the repo rate at 6.5% for the fifth consecutive time.
The market is likely to exhibit range-bound behavior, with the Nifty expected to fluctuate between 20,850 and 21,000, said Shrey Jain, founder and chief executive officer of SAS Online. Key support levels for the index will be between 20,675 and20,725, while resistance is anticipated in the 20,940-21,000 range, he said.
"The Bank Nifty is likely to find support in the 46,500-46,650 range, with resistance levels in the 46,925-47,000 range. A period of consolidation around current levels is likely, before the initiation of the next phase of the market rally," Jain said.
HDFC Bank Ltd., HCL Technologies Ltd., Infosys Ltd., ICICI Bank Ltd. and Larsen & Toubro Ltd. were positively contributing to changes in the Nifty.
Adani Enterprises Ltd., Axis Bank Ltd., Bajaj Finance Ltd., ITC Ltd. and Mahindra & Mahindra Ltd. were weighing down the index.
Five of the sectoral indices rose, while four fell. Nifty IT gained the most, rising 1%, followed by Nifty Media. While, Nifty Pharma, Nifty Auto, and Nifty Energy fell.
The broader markets underperformed; the BSE MidCap fell 0.1%, while the BSE SmallCap was flat.
Ten of the 20 sectors compiled by BSE advanced, while the other half fell.
The market breadth was in the favour of buyers. As many as 1,918 stocks advanced, 1,673 declined and 159 remained unchanged on the BSE.
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