Mixed Trading Keeps Markets in Range-Bound Mode

Mumbai: The domestic markets traded flat on Wednesday as negative global cues, disappointing factory output data for July and profit booking dented investors’ sentiments. Both the key indices managed to end the day’s trade slightly in the green as value buying at lower levels and short covering aided in recovery.
The wider Nifty edged up by 11 points or 0.13 per cent to 8,726.60 points. The market barometer 30-scrip Sensex closed at 28,372.23 points, up 18.69 points or 0.07 per cent, from its previous close at 28,353.54 points.

Dhruv Desai, Director & COO at Tradebulls

IT stocks faced resistance at higher levels due to profit booking, while banking, auto and pharma stocks held early gains due to buying support at lower levels. Oil-gas stocks traded with mixed sentiments. Aviation stocks traded with mixed sentiments on profit booking, and power sector stocks witnessed buying support from lower levels. FMCG stocks traded with mixed sentiments on short covering at lower levels.

Opened at 28,345.49 points, Sensex touched a high of 28,416.41 points and a low of 28,259.38 points during the intra-day trade. However, the BSE market breadth was tilted in favour of the bulls with 1,754 advances and 961 declines.

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the CNX Nifty witnessed some recovery due to short covering. Desai said: “IT stocks faced resistance at higher levels due to profit booking, while banking, auto and pharma stocks held early gains due to buying support at lower levels. Oil-gas stocks traded with mixed sentiments. Aviation stocks traded with mixed sentiments on profit booking, and power sector stocks witnessed buying support from lower levels. FMCG stocks traded with mixed sentiments on short covering at lower levels.”

On Monday, both the key Indian indices were dragged lower by increased possibility of a US rate hike, coupled with profit-booking and outflow of foreign funds. The barometer index had plunged by 443.71 points or 1.54 per cent, while the NSE Nifty dipped by 151.10 points or 1.70 per cent. The Indian equity markets were closed on Tuesday on account of Eid-ul-Zuha.

Source: IANS