BSE Sensex and Nifty 50 settled decrease for the third straight trading session on Tuesday on the back of increasing Covid-19 infection circumstances in a variety of components of the nation and new restrictions. BSE Sensex ended 31 points or .06 per cent down at 50,363.96, though the broader Nifty 50 index settled at 14,910, down 19.05 points or .13 per cent. Index heavyweights such as HDFC Bank, ICICI Bank, Housing Development Finance Corporation (HDFC), Larsen & Toubro and Reliance Industries Ltd (RIL) contributed the most to the indices loss. During intraday, BSE Sensex hit a higher of 50,858 and a low of 50,289. While NSE’s Nifty touched a day’s higher of 15,051.60 and a low of 14,890.65. India VIX, the volatility index, eased almost 5 per cent to close at 20.19 levels. Meanwhile, Finance Minister Nirmala Sitharaman announced that the Union Cabinet has cleared the setting up the Development Finance Institution (DFI). Sitharaman added that the initial capital infusion will stand at Rs 20,000 crore.
Rohit Singre, Senior Technical Analyst at LKP Securities
The index opened a day with gains but not in a position to sustain on the positive zone and closed the day at 14920 with mild loss & formed a bearish candle on the everyday chart. On the larger side, 15000-15050 zone is a robust hurdle we have been witnessing promoting pressures from talked about levels so for the fresh upside index require to sustain above 15050 zone, quick help is coming close to 14800-14750 zone any break under mentioned levels can enhance promoting stress.
Vinod Nair, Head of Research at Geojit Financial Services
Indian industry is impacted due to increasing crude rates and promoting by each FIIs & DIIs. We can count on FII promoting to calm down post the Fed policy meet and ease in US bond yield, as an accommodative outlook is anticipated. The domestic sentiment is suppressed by increasing covid-19 circumstances growing the threat of a second wave and fall in macro information like production & rise in inflation.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research Limited
The industry failed to show resilience to remain above the Nifty 50 index level of 15,000. While it is topic to additional cost action evolution, the technical aspects are aligned to help a lackluster industry movement going forward. Any corrective wave down really should discover help about 14750. As such, the traders are advised to refrain from creating a fresh getting position till we witness a correction till 14750 levels. The volatility is observed to expand in today’s trading session indicating profit booking and distribution of stocks at a larger industry level.
Binod Modi, Head Strategy at Reliance Securities
Domestic equities gave up initial gains and traded flat towards the final hours of the day in spite of favourable cues from worldwide equities. Financials as soon as once more dragged the markets. Notably, IT stocks had been in concentrate today primarily on expectations of sustained earnings momentum in 4QFY21E and positive aspects from a feasible fall in INR. The volatility index softened sharply for the second consecutive day. In our view, growing issues with regards to resurgence of Covid-19 circumstances in a variety of components of the nation and resulted restrictions could be a close to term threat for domestic markets. Additionally, volatile bond markets and soaring inflation will continue to weigh on investors’ sentiments. However, we continue to think that the current rise in bond yield discounts a more quickly recovery in financial development and this is unlikely to move northward beyond a point. We think that any meaningful correction in the industry really should only be developing an chance for bargain trading as India continues to supply superior development prospects