Stock market opening: Sensex, Nifty see muted start, Asian Paints, Grasim take lead
Aug 12, 2024, 10:54 IST
Both indices, Sensex and Nifty saw a muted start to the week's opening on Monday. While Sensex was trading at 79,274.72 points, down by over 430 points, while Nifty was at 24,222.35, dipping by 0.6%.
Grasim Paints, JSW Steel, Cipla gained over 1% each, while Asian Paints and Tata Motors also gained lead during early trade. Adani Entertainment, Adani Ports, NTPC, SBI Life and Tata Consumers were amidst the leading laggards.
Aditya Gaggar, director of Progressive Shares notes that a range of 23,970-24,400 is a make or break for Nifty, and a breakout on either side will open the door for a further 300-400 points. The same observation was also seen in BankNifty with a range of 49,730-50,730.
"Some stocks look strong on a technical front Balrampur Chini and United Spirits, HUL, and ITC. The media segment shows stock-specific buying (Network18 & SunTV). The pharma sector has extended its strong uptrend and breakout in a few counters are indicating further rally in the sector (Alkem Labs, IPCA Labs, and Mankind Pharma)", he continued.
All broad market indices dipped during early trade, about 1% each, with the exception of India VIX, which inched up about 5.57%. Only consumer durables and realty saw shoots of greens during opening trade today, while media dipped over 1%.
Shrikant Chouhan, Head Equity Research, Kotak Securities, highlights that "benchmark indices experienced profit booking at higher levels last week. Nifty closed 1.42% down, while Sensex closed 1,260 points lower. The metal index declined by nearly 3%, while healthcare and pharma stocks held positive momentum despite weak market sentiment. The market slipped below the 20-day SMA (simple moving average) during the week but recovered some losses in the second half and eventually closed at 24,367/79,722.
"For the week, 23,800/78,000 and 24,500/80,100 are expected to be the major support and resistance levels. Above 24,500/80,100, the market may continue the pullback formation until 24,700/80,600 or even 24,900/81,200. On the other hand, below 24,100/78,600, selling pressure may increase, potentially leading to a drop to the 50-day SMA and 23,800/78,000", he said.
"The suggested strategy is to reduce long positions until the market crosses 24,500 levels. Considering trading bets above 24,500 is advisable as there may be a technical breakout that could push the market towards 24,900 levels. Below 23,800, it could fall to 23,300 levels", continued Chouhan.
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Grasim Paints, JSW Steel, Cipla gained over 1% each, while Asian Paints and Tata Motors also gained lead during early trade. Adani Entertainment, Adani Ports, NTPC, SBI Life and Tata Consumers were amidst the leading laggards.
Aditya Gaggar, director of Progressive Shares notes that a range of 23,970-24,400 is a make or break for Nifty, and a breakout on either side will open the door for a further 300-400 points. The same observation was also seen in BankNifty with a range of 49,730-50,730.
"Some stocks look strong on a technical front Balrampur Chini and United Spirits, HUL, and ITC. The media segment shows stock-specific buying (Network18 & SunTV). The pharma sector has extended its strong uptrend and breakout in a few counters are indicating further rally in the sector (Alkem Labs, IPCA Labs, and Mankind Pharma)", he continued.
All broad market indices dipped during early trade, about 1% each, with the exception of India VIX, which inched up about 5.57%. Only consumer durables and realty saw shoots of greens during opening trade today, while media dipped over 1%.
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"For the week, 23,800/78,000 and 24,500/80,100 are expected to be the major support and resistance levels. Above 24,500/80,100, the market may continue the pullback formation until 24,700/80,600 or even 24,900/81,200. On the other hand, below 24,100/78,600, selling pressure may increase, potentially leading to a drop to the 50-day SMA and 23,800/78,000", he said.
"The suggested strategy is to reduce long positions until the market crosses 24,500 levels. Considering trading bets above 24,500 is advisable as there may be a technical breakout that could push the market towards 24,900 levels. Below 23,800, it could fall to 23,300 levels", continued Chouhan.