Nifty, Sensex Marginally Lower On First Day Of 2024 Amid Lack Of Cues: Midday Market Update

India's benchmark indices were trading marginally lower through midday on Monday amid lack of fresh triggers as most markets across the globe remained closed for New Year festivities.

At 12:07 p.m., the NSE Nifty 50 was trading 6.95 points, or 0.03%, lower at 21,732.80, while the S&P BSE Sensex declined 97 points, or 0.13%, to 72,143.19. 

So far in the day, Nifty fell 0.22% to 21,684.05 and the Sensex declined 0.29% to 72,033.97.

"Technically, it has formed a bullish candle on the weekly chart and formed a higher bottom on the daily chart, which is largely positive," said Shrikant Chouhan, head of equity research at Kotak Securities. "Our view is that the broader market structure is still bullish, but due to a temporary overbought situation, we may see some profit-booking at higher levels."

For traders following the trend, 21,600/71,900 can act as a crucial support for both the indices, he said. "If the indices manages to sustain above it, then they can go up to 21,850–21,925/72,500–72,700," Chouhan said.

However, a downtrend below 21,600/71,900 will be vulnerable, he said. "A close below 21,600/72,500 may send the indices to 21,500-21,380/71,600-71,500."

Coal India Ltd., ITC Ltd., Tata Motors Ltd., ICICI Bank Ltd. and Adani Enterprises Ltd. contributed the most to Nifty 50.

HDFC Bank Ltd., Bharti Airtel Ltd., Mahindra & Mahindra Ltd., Hindustan Unilever Ltd. and Reliance Industries Ltd weighed on the index.

All sectors gained on the NSE, with the Nifty PSU Bank emerging as the top performer.

The broader markets outperformed the benchmark indices, with the BSE Midcap rising 0.74% and the Smallcap gaining 0.84% through midday trade on Monday.

Nineteen out of the 20 sectors, except Teck, advanced on the BSE, with Telecommunication rising the most.

The market breadth remained skewed in favour of the buyers as 2,595 stocks rose, 1,137 declined and 185 remained unchanged on the BSE.