Home / Markets / Stock Markets /  Nifty again fails at the 9,200 hurdle but midcaps outperform. What analysts say

Despite positive global cues, Indian markets could not sustain early gains and ended flat today. The Sensex settled 63 points lower at 30,672, after rising over 400 points intra-day The Nifty 50 index settled 0.11% lower at 9,029 after rising to 9,161 at day's high. Global markets were mostly higher as investors cheered the reopening of some economies amid hopes for stimulus.

Banking stocks outperformed today with Nifty Bank index rising nearly 1% today. The banking index dropped 8.3% last week amid concerns of a fresh bout of bad loans.

Shares of ITC Ltd rose 3% after the company said on Sunday it would buy spice maker Sunrise Foods. Nifty metal index today surged 3% on optimism that China will announce more measures to support it economy.

Despite consolidation in Sensex and Nifty, broader markets outperformed today with BSE midcap and smallcap indices rising 1.2% and 0.6% respectively.

Among the Sensex stocks, TCS fell 3.8%, Infosys Ltd 1.7%, and Bharti Airtel 5.7%. Airtel shares fell on reports that Bharti Telecom was offering up to 150 million shares in Airtel.

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

Sumeet Bagadia, Executive Director, Choice Broking

"Nifty settled its closing at 9,029 level with the minor loss of 10 points; however in contrast, the Bank Nifty gave a closing at 17,440 with the gain of 160 points. We got a good opening on back of Asian markets and few large cap private banks. However, the index couldn’t sustain its early gains and started to fall during the mid of 1st session and filled the gap which it formed while giving an opening. The way the index gave a downside movement during the trading session, it seems that we might see a further downside movement in the Index in upcoming trading sessions. At present level, the index has strong support at 8950-8800 while upside resistance comes at 9350 level."

Vinod Nair, Head of Research at Geojit Financial Services

"After opening up by more than 1%, benchmark indices pared gains to close flat, with a negative bias. However, global market cues were positive, on the back of additional stimulus measures and slow reopening of economies globally. The unabated rise of infections continues in India, which throws up further uncertainties with regards to extension of lockdown measures. Globally, commodity markets were strong and the metal index outperformed in today’s trade. This was driven partly due to measures announced to support the Chinese economy, which accounts for a major portion of the global demand for metals."

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

"The markets ended on a sideways note once again - it was neither successful in crossing 9175, nor did it break 8950. With expiry just around the corner, the trading range has become narrow which is making it difficult for traders to take a position in a particular direction."

Ruchit Jain, Senior Analyst - Technical and Derivatives, Angel Broking

"The index has ended the session above the support of 9000 but we are still hopeful of some upmove till this support is intact on closing basis. Hence, traders are advised to look for stock specific buying opportunities and trade with a positive bias. On the higher side, 9200 remains the immediate hurdle and once this resistance in taken out, we can expect some momentum towards 9300-9350 in the near term."

Vishal Wagh, Research Head, Bonanza Portfolio

"Going forward, the market may see volatility due to expiry week. The rollover will decide the momentum for the market. Currently, Nifty is in the range of 8950-9200. It may continue to trade within range for a day or two."

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