Sensex, Nifty Flat As HDFC Bank, RIL Help Recover Loss: Midday Market Update
As of 11:42 a.m., the Nifty 50 was 5.55 points, or 0.03% higher at 21,155.70, while the Sensex was trading up 13.91 points, or 0.02% at 70,520.23.
Indian stock benchmark indices recovered from the worst open in two months and traded flat through midday on Thursday, as heavyweights HDFC Bank Ltd. and Reliance Industries Ltd. led gains.
As of 11:42 a.m., the Nifty 50 was 5.55 points, or 0.03% higher at 21,155.70, while the Sensex was trading up 13.91 points, or 0.02% at 70,520.23.
On Wednesday, both Nifty and Sensex witnessed a sharp fall from their lifetime highs, as investors booked profits a day before weekly expiry. Adding to this, fresh concerns about rising Covid-19 cases also weighed on sentiment.
"The upcoming days are anticipated to be volatile due to concerns about increasing Covid cases and geopolitical tensions, which have unsettled investors. This unease resulted in a significant market decline yesterday, and it appears to be carrying over into today," said Shrey Jain, founder and chief executive officer of SAS Online.
For Thursday's expiry, Jain anticipates challenges for the Nifty at higher levels because many investors are actively betting against it, as indicated by aggressive call writing in multiple call strikes.
"With near-term support maintained near 20,800 zone, one needs to wait and watch for things to settle down and confirm a clarity for further development. The support for the day is seen at 21,000, while the resistance is seen at 21,300," Prabhudas Lilladher Pvt. said in a report.
Support zone for Nifty Bank is near 46,300 levels, the report said. With bias turning little bit cautious, there is need for further clarity and conviction to forecast progress. Bank Nifty would have a daily range of 47,000–47900 levels, the brokerage said.
Britannia Industries Ltd., HDFC Bank Ltd., Power Grid Corp. Of India, Kotak Mahindra Bank Ltd. and Reliance Industries Ltd. were positively contributing to changes in the Nifty.
Whereas, Axis Bank Ltd., Bajaj Finance Ltd., ICICI Bank Ltd., IndusInd Bank Ltd. and Larsen & Toubro Ltd. were negatively contributing to the change.
Most NSE sectoral indices gained, with Nifty Media and Nifty Oil & Gas rising the most. Nifty Bank and Nifty Financial Services were the only indices that fell.
The broader markets outperformed the benchmark indices; the S&P BSE MidCap rose 0.79%, and the BSE SmallCap was up by 1.05%.
Nineteen of the 20 sectors compiled by the BSE rose. BSE Bankex was the only sector that fell.
The market breadth was skewed in the favour of buyers. Around 2,384 stocks advanced, 1,228 declined, and 137 remained unchanged on the BSE.
