In a very tumultuous session on Monday, domestic equities benchmarks ended up flat. Market emotions were affected by external factors, and traders sought more clarity on inflation and interest rate indications.
The barometer Sensex for the BSE rose 14.54 points, or 0.02 percent, on the day to close at 66,023.69. The NSE’s Nifty50 finished unchanged, rising just 0.30 points to reach 19,674.55. As BSE midcap smallcap indices ended the day with respectable gains, broader markets outperformed the headline rivals. India VIX, a measure of fear, increased by more than 2% to 10.90.
In a dismal trading session, markets reversed 4-session losses to manage moderate gains through selective purchasing. Despite early market volatility, local gauges ended flat due to lax European and other Asian indices.
According to Shrikant Chouhan, Head of Research (Retail), Kotak Securities, a recent increase in US government yields is unsettling investors as FIIs continue to sell shares in local equities.
Technically, the Nifty has created a Doji candlestick formation on daily charts, signalling a sharp divide between bulls and bears. From the present levels, a brief pullback bounce is possible, he continued. The 50-day SMA or 19,600 would serve as a crucial support zone for the bulls.
Above that point, the market may rise as high as 19,800–19,850. On the other hand, a new sell-off is only likely to occur if 19,600 is breached, below which the index may go as low as 19,525 or 19,500.
The Nifty real estate index increased by approximately 2%, while the Nifty financial services index increased by around 1% among the sectoral indices. Other notable gainers included the private bank and consumer durables indices. The Nifty private bank and pharma indices also ended with large losses, while the Nifty IT and media indices each saw declines of approximately 1%.