On Monday, Domestic equity market indices BSE Sensex and Nifty50 were trading low, reflecting the global markets. BSE Sensex was hovering around 58,050, while the Nifty 50 index gave up 17,350. HCL Tech, Reliance Industries Ltd, ICICI Bank, Nestle India, Infosys, Tech Mahindra, Bajaj Finance were among the top BSE Sensex losers. Housing Development Finance Corporation (HDFC), Maruti Suzuki, Tata consultancy Service (TCS), Tata Steel, Bajaj Auto, Bharti Airtel were among the BSE Sensex top gainer.
The markets opened on a soft note this morning. This does not come as a surprise considering the sharp run-up with no correction. The support for the Nifty is currently at 17250 and as long as that holds, traders can consider a buy-on dips approach for a target of 17450.
All the sectoral indices were trading in the negative territory. Bank Nifty fell over half a percent to 36483 except Nifty Media, Nifty Metal, and Nifty Realty.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said to Financial Express, “There are mixed signals for the markets at the start of the week. On the positive side, both FIIs and DIIs were bought last Thursday and the futures market also indicates FIIs going long. However, news from the US and Europe indicates a slowing down of the economy impacted by continuing restrictions on economic activity triggered by the new waves of the pandemic. Developed markets have turned slightly weak on these negative developments.”
Adding further he said, “the Mid-cap Index has staged a comeback this month outperforming the Nifty. But investors should refrain from jumping into the broader market since risk in the segment is on the higher side.”