Stock market today: PSU, Private banks dip, pharma and healthcare take lead in early trade

Both indices, Sensex and Nifty were trading in red in early morning trade. Nifty opened at 24,213.35 points, and was down by 0.37% at 24,212.85 points, as of 9:45 am. Sensex, which opened at 79,778.98 points, was down by 0.49% at 79,653.45 points.

As for broad market indices, the Nifty 100, 200, 500, and India VIX opened the day in red. Amidst sectoral indices, the Nifty auto, bank, financial services, metal, realty, and private banks were in red during early morning trade. Infact, Nifty Bank, financial services, and private banks registered over 1% fall, while pharma and healthcare gained over 1% in early trade.

Cipla, Divis Labs, Bajaj Auto, Sun Pharma, and JSW Steel took early leads during morning trade today, while HDFC bank, Titan, Mahindra and Mahindra, Tata Steel, IndusInd, and ICICI Bank were among the laggards.

According to Mr. Aditya Gaggar, director of Progressive Shares, "From the past couple of days, it seems that the index is finding it difficult to hold higher levels, and bearish divergence in RSI indicates a weakening of momentum. The auto sector has been oscillating in a well-maintained range, breakout is imminent. The IT sector is on the verge of a massive breakout, and one can expect a strong outperformance after the pattern breakout. With a strong bullish candle, the pharmaceutical sector emerged from its congestion, indicating a resumption of its uptrend (Laurus Labs, Lupin, and Zydus Life)".

As Shrikant Chouhan, Head of Equity Research, Kotak Securities notes, one should consider buying the Nifty/Sensex if it drops to 24,200/79,700 levels."Benchmark indices continued the positive momentum, with Nifty/Sensex recording a new all-time high of 24,401/80,392.64. Across sectors, pharma, healthcare, and IT indices gained over 1%, while some profit booking was witnessed in select media and financial stocks".

"After a promising uptrend rally, the market is witnessing non-directional activity at higher levels; perhaps traders are waiting for a breakout on either side. For day traders, 24,400/80,390 would be the immediate breakout level. Above that, the market can move up to 24,500–24,525/80,700–80,800. Below 24,400, the market can retest 24,200–24,165/79,700–79,550 levels", he continued.

Sameet Chavan, Head Research, Technical, and Derivative - Angel One notes that the market is showing initial signs of exhaustion. "Technically, there have been no significant changes since the last closure, but the decline from highs could be interpreted as the initial sign of exhaustion for the bulls. On the level-specific front, the highs of 24,400 could be seen as intermediate resistance for Nifty. While on the lower end of the spectrum, 24,200-24,150 is likely to provide some cushion to any upcoming blips, while 24,100-24,000 withholds the sacrosanct support in the near term. Also, taking into consideration the overbought scenario, it is prudent to maintain caution and focus on thematic movers, which have been in the play for quite some time. Looking ahead, we are optimistic and foresee continued sectoral rotation", he advises.