Nifty SmallCap index hits fresh all-time high; Nifty IT in red for third straight day!
Market Update at 10:35 AM: Indian markets were seen trading with modest losses in the early deals on Thursday. Sensex and Nifty were down by 0.09 per cent & 0.06 per cent, respectively.
Talking about the broader market performance, a divergent trend was witnessed with Nifty SmallCap 100 index scaling to a fresh all-time high of 10,696 and was up by over half a per cent while Nifty MidCap 100 index dipped marginally.
Among the sectoral indices, Nifty FMCG & energy were the top gainers. On the flip side, Nifty Realty and Nifty IT were the top losers. Interestingly, Nifty IT is in red for the third straight day.
Nifty opened the session with a positive bias; however, it failed to build on early gains and fell sharply. At one point of time in the day, the index slipped below the prior bar low but managed to recover from the lower levels and ended the session with minuscule losses.
The broader market indices witnessed some buying interest. As a result, the broader market outperformed the frontline gauge. Among the sectoral indices, Nifty Bank and Nifty PSU Bank were the top gainers.
On the daily chart, Nifty formed a hanging man-like pattern and also, managed to defend the level of 17,340 on a closing basis. Thursday, being the weekly options expiry day also, happens to be the last trading session of the week as Friday will be a trading holiday on account of Ganesh Chaturthi. Hence, expect some volatility in the markets on Thursday.
On the downside, the zone of 17,200-17,270 is likely to act as an important support level. Meanwhile, on the upside, the level of 17,400, followed by 17,440 may act as a resistance level.
Technical set up is showing that the index is forming a lower high and lower low, but at the same time, it is not closing below the 17,340 mark. Hence, as long as the index does not close below this level, trade with a positive bias and focus on stock-specific action.
Interestingly, the FIIs have sold for the third straight day in a row as they turned net seller on Wednesday with a net outflow of Rs 802.51 crore. On the other hand, DIIs were net buyers to the tune of Rs 0.60 crore.