Benchmark stock market indices made a flat start on Wednesday, despite positive global cues. Some heavyweight banking stocks registered declines, contributing to the flat opening.
Around 9:45 am, the S&P BSE Sensex was up 2.12 points to 64,944.52, while the NSE Nifty 50 recorded a modest rise of 17.30 points, reaching 19,424. The broader market indices commenced the trading session on a positive note, albeit with marginal gains.
Most of the major sectoral indices began in positive territory, with the exception of the Nifty Bank and Nifty Financial Services.
Among the top five gainers on the Nifty 50 were BPCL, Asian Paints, Dr. Reddy’s, Cipla, and Adani Ports. Conversely, ICICI Bank, Kotak Mahindra Bank, Bajaj Finance, Axis Bank, and NTPC were the most prominent losers.
While Asian shares displayed signs of improvement, possibly due to indications that the US Federal Reserve is nearing the conclusion of its policy tightening cycle, domestic investors remained cautious. The uncertain global cues, influenced by various factors, contributed to this cautious outlook and selling by foreign institutional investors (FIIs).
On November 7, foreign institutional investors sold shares worth Rs 497.21 crore, while domestic institutional investors purchased stocks worth Rs 700.28 crore.
Aditya Gaggar, Director of Progressive Shares, pointed out the presence of an “Inside bar candlestick pattern” on the daily chart, suggesting consolidation in the markets.
Mandar Bhojane, research analyst at Choice Broking, had anticipated a slightly higher opening for the benchmark Sensex and Nifty. He also highlighted the presence of a “hammer candlestick pattern” on the BankNifty’s daily chart, often considered a potential indicator of a bullish trend.
“For investors with long positions, it is advisable to continue trailing their stop loss to protect their gains. As for traders, it is recommended to consider buying the dips, but exercise caution by setting a strict stop loss near the 19,200 levels to manage risks effectively,” Bhojane said.