BackVolatility to stay, say analysts as Sensex ends choppy session lower
Among the Sensex stocks, Asian Paints, HDFC, PowerGrid, M&M, ITC and Kotak Bank today fell between 1.5% and 3%On the higher side 10,000 and 10,070 would be hurdles for Nifty, say analysts
PremiumIndian markets ended a choppy session lower today amid border tensions with China and mixed global cues. Sensex ended about 100 points lower at 33,507 after flitting between small gains and losses throughout the day. The broader Nifty 50 index ended 0.33% lower at 9,881. Financial stocks remained under pressure with the Nifty Bank index closing 0.5% lower.
Meanwhile, the number of COVID-19 deaths in India neared 12,000, with the number of infections surging past 3.5 lakh.
Among the Sensex stocks, Asian Paints, HDFC, PowerGrid, M&M, ITC and Kotak Bank today fell between 1.5% and 3%.
Here is what analysts said on today's market action:
Shrikant Chouhan, Executive Vice President at Kotak Securities
“Nifty remained in a narrow trading range on the back of uncertainties over border issue. Nifty came off from the highest point of the day. Tomorrow on the day of weekly expiry, we expect market to find major support between the levels of 9800 and 9700. Any weak opening around 9800 should be utilized to trade long. On the higher side 10,000 and 10,070 would be hurdles. Expect short covering, if Nifty crosses the level of 10070."
Ajit Mishra, VP - Research, Religare Broking Ltd.
"In yet another volatile session, the benchmark indices swung both ways before ending the session with minor losses. Mixed global cues combined with the India-China stand-off at LAC kept the mood somber. Though some rebound was witnessed in the middle but selling pressure in the latter half trimmed all the gains. The recent tussle with China has derailed the momentum and the market is now awaiting some fresh trigger. We reiterate our cautious view on the index and suggest focusing more on stock selection in the meanwhile."
Vishal Wagh, Research Head, Bonanza Portfolio
"Market opened with a gap-down due to the geopolitical tensions India-China at the same time global indices also remained a mixed bag. Meanwhile, the Supreme Court extended the decision on moratorium interest until the first week of August which helped the market to move up. Nifty tested an intraday high of 10,002. In the last hour of trade profit booking witness in the market result of which the market closed just near to 9870.
Going forward, major resistance for Nifty is 10,040 and support is at 9,700. Bank Nifty will face resistance around 20700 and support will be seen at 19100 levels."
Vinod Nair, Head of Research at Geojit Financial Services
"After another day of indecisive trades, brought by the threat of escalation in border dispute with China, Indian benchmark indices ended slightly negative. The losses were mainly due to financial stocks. The major sectoral gainer was the auto sector, led by gains in Maruti. FIIs have also been net sellers in equity this week which have impacted the markets. Volatility to remain. "
Manish Hathiramani, Index Trader and Technical Analyst, Deen Dayal Investments
"The markets are in a clear state of consolidation - we are unable to go past either of the two levels - 10,050 or 9,700. Until that does not happen, we will be trading in a rangebound pattern."
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