Home >Markets >Stock Markets >Markets searching for direction, say analysts as Sensex, Nifty fall for 3rd day
Sensex fell about 130 points today
Sensex fell about 130 points today

Markets searching for direction, say analysts as Sensex, Nifty fall for 3rd day

  • For the week, the NSE Nifty and BSE Sensex slid for the first time since mid-June
  • RIL and HDFC Bank both fell around 2% each today

Indian markets ended lower today, weighed down by 2% fall in Reliance Industries and HDFC Bank but gains in State Bank of India and pharma stocks kept losses in check. The NSE Nifty 50 index fell 0.26% to 11,073 while Sensex dropped 130 points to 37,606, their third fall in a row. For the week, the NSE Nifty and BSE Sensex slid for the first time since mid-June by 1.08% and 1.37%, respectively.

On a monthly basis, however, Nifty and Sensex were up 7.5% and 7.7%, respectively.

State Bank of India (SBI), India's biggest lender by assets, rose as much as 4.4% after its profit surged and bad-loan provisioning fell in the quarter to June.

“While global markets were mixed, domestic indices showed bouts of volatile spell due to weakness in technology stocks even as financial stocks gained strength. While the Nifty remains weak, the Bank-Nifty has managed to close above its lowest level of the day," said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities

The country's biggest drugmaker Sun Pharma also rose as much as 6% after its results, helping the Nifty pharma index gain nearly 4% in the session.

Sun Pharma's rival Cipla rose over 5% and topped the Nifty gainers. Smaller drugmakers Laurus Labs and Torrent Pharma advanced 19% and 13%, respectively, after they reported strong results.

Here is what analysts said on today's market performance:

Nagaraj Shetti, Technical Research Analyst, HDFC Securities

"After showing sharp weakness from the highs in the last couple of sessions, Nifty shifted into a consolidation today and closed the day on a slightly negative note. The immediate support of 11100 has been broken on the downside on Friday, but Nifty failed to pickup downside momentum below that support. This pattern could raise doubt over the downside breakout of the sideways range of the last few sessions.

The short term trend of Nifty is slightly negative amidst a range movement. Important lower supports to be watched for the resumption of downtrend is at 11000 levels. The overall pattern signal a possibility of upside bounce from here or from the lows. Immediate resistance for the next week is placed around 11300-11350."

Vinod Nair, Head of Research at Geojit Financial Services

"Indian markets closed the session flat, with a negative bias. Following one of the worst quarterly US GDP data, Asian shares closed in the negative while European markets were also trading flat. In India, the uncertainty was visible as profit booking and post-earnings results performance of index heavyweights, impacted the benchmark indices. On a weekly basis, the indices closed with slight losses following a results- heavy week and stock specific action in the benchmark indices while at the same time virus infections continued to increase."

Manish Hathiramani, Index Trader and Technical Analyst, Deen Dayal Investments

"We closed within the range of 11000-11100 which means markets are still range bound and do not have a definite direction. We should go past either level in the coming week which will result in a one way move of at least 200 points. Until then it would be a wait and watch situation."

Subscribe to newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Click here to read the Mint ePaperLivemint.com is now on Telegram. Join Livemint channel in your Telegram and stay updated

Close
×
My Reads Logout