Midcaps Hit Record High, Sensex Settles At 71,315
On consolidation after the recent rally, the BSE benchmark Sensex declined 169 points or 0.24 per cent to settle at 71,315, while NSE Nifty fell 91.10 points or 0.42 per cent to end at 21,466.
Nifty Banks and Financial Services lost 0.6 per cent and 0.4 per cent, respectively, after rising 2 per cent each in the last two sessions. Information technology stocks fell 0.3 per cent, snapping a two-session rally in which the index rose about 8 per cent.
The market breadth was skewed in favour of the bulls. About 2,120 stocks gained, 1,778 declined and 130 remained unchanged on the BSE.
FII and FPIs, on Monday, saw a net sales of Rs 33.51 crore in the cash segment. A total of Rs 11,507.05 crore was sold against a total purchase of Rs 11,473.54 crore. Domestic institutional investors saw a net purchase of Rs 413.88 crore in the cash segment. A total of Rs 9,243.87 crore was sold against a total purchase of Rs 9,657.75 crore.
Meanwhile, The market started on a subdued note as concerns over oil supply disruptions through the Red Sea and elevated valuations dented investor sentiment. On the global front, attention will be directed towards BOJ monetary policy and UK inflation data.
We expect a near-term consolidation in the market due to an unfavourable risk-reward after the recent rapid performance, concerns over El Nino, and a slowdown in world GDP.
Technically, the important key resistances placed in October Nifty future are at 21,466 levels, which could offer the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 21,505 – 21,676 levels. Immediate support is placed at 21,373 – 21,303 levels.
