Indian stock markets’ benchmark indices — BSE Sensex, and NSE Nifty50 — opened on the backfoot on Monday
Indian stock markets’ benchmark indices — BSE Sensex, and NSE Nifty50 — opened on the backfoot on Monday amid Hindenburg-Sebi row. The downside, however, was capped by calm global markets.
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The BSE Sensex was at 79,477, down 228 points or 0.29 per cent, while the Nifty50 was at 24,282, down 85 points or 0.35 per cent in early deals.
In the broader markets, the BSE MidCap and SmallCap indices edged 0.48 per cent and 0.46 per cent lower, respectively.
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Anand James, Chief Market Strategist, Geojit Financial Services, said: “Momentum is missing and VIX was seen swinging making directional trades difficult. Nifty did have a triangular consolidation at the bottom, seen as early signs of reversal, but is yet to shake off the bears, as evidenced by the lack of follow through momentum on Friday despite a peek above 24400. This was surprising, but could be attributed to the near 400 point gapped up opening on Friday, leaving little fuel left to propel further upsides on the last working day of the week. It is fair to say that the trend is evenly poised. Nifty now needs a push above the 20 day SMA now at 24420, to aim for 24540 initially and embark on a 25800 trajectory, but such prospects will not be brought into consideration today if unable to float above 24360. Downside marker is now at 23975, which is where both the Bollinger band extremity and 50 day SMA has converged. An attack on this region will expose the 23670 and the low 23000s, but prospects of the same appear low, given low momentum.”
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Global Cues
Asian stocks started the week on a quiet note on Monday, with Japan’s holiday reducing one source of recent volatility. Investors are now focused on upcoming US and Chinese economic data for insights into global growth prospects.
The S&P 500 rose on Friday and remained steady for the week after recovering from recession-induced losses. Gains were led by the tech sector, including Take-Two Interactive and Expedia. Investors are now eyeing economic indicators and the next Federal Reserve meeting for potential rate cuts in September.
