Both indices, Sensex and Nifty, opened the day's trade in red. As of 9:50 am, Sensex was down by 141 points, trading at 80,661.33 points, while Nifty was slightly down by 0.04% and trading at 24,690.20 points.
Divis Labs, Dr. Reddy, Larsen and Toubro, Hindustan Unilever, and Nestle India gained an early edge during the day's trade, while UltraTech Cement, Kotak Mahindra Bank, Tech Mahindra and HDFC Bank were amidst the leading laggards.
Amidst broad market indices, select Nifty midcap indices were trading in red. Amidst sectoral indices, bank, auto, IT, PSU, private bank and realty were trading in red, registering marginal dips. On the other hand, media, metal, pharma and healthcare were trading in green today.
Aditya Gaggar, Director of Progressive Shares noted that the immediate resistance is placed at 51,100 while on the downside, 50,300 will be considered as support. "The IT sector is likely to witness a profit-booking correction as it is forming a bearish divergence in the RSI but such correction is likely to be short-lived. The defensive segment i.e. the pharma is soaring high with a higher top higher bottom series which indicates a strong momentum, boosting our confidence to remain bullish (IPCA Labs, Zydus Lifescience). For the past couple of weeks, we have been recommending sugar counters from the FMCG segment and as they are performing as per our expectations; we continue to hold a positive stance", he continued.
Shrikant Chouhan, Head Equity Research, Kotak Securities, highlights that some buying interest was observed in banking and financial stocks, while some profit booking took place in select FMCG and media stocks during intraday trading. "From a technical perspective, the overall market structure appears bullish. However, we recommend that day traders consider buying on dips as the ideal strategy. Key support zones are at 24,600/80,500, and key resistance zones are at 24,850/81,250. If the market sustains below the level of 24,575/80,300, further downward pressure may be expected, possibly leading the market to 24,500 levels. The recommended strategy is to buy between 24,600 and 24,500 levels, with a stop loss set at 24,400 on a closing basis", said Chouhan.
