The Indian equity markets opened flat on Wednesday, mirroring the cautious sentiment in global markets ahead of the release of key US economic data later this week.
The benchmark Nifty 50 index opened at 24,680.55, down marginally by 0.07% from the previous close of 24,698.85. Similarly, the Sensex opened at 80,667.25, a dip of 0.17% compared to the previous close of 80,802.86.
“The benchmark Sensex and Nifty indices are expected to open flat on Aug 21, following GIFT Nifty trends indicating a loss of -11 points for the broader index,” said Hardik Matalia, Derivative Analyst at Choice Broking.
In the broader market, gainers were led by pharma major Divi’s Lab, which surged 2.70%, followed by Dr Reddy’s (1.55%), Larsen & Toubro (0.85%), Bharti Airtel (0.66%) and Cipla (0.57%).
On the flip side, the top losers included UltraTech Cement (-1.14%), Shriram Finance (-0.78%), Tech Mahindra (-0.76%), ICICI Bank (-0.70%) and HDFC Bank (-0.65%).
“After a flat opening, Nifty can find support at 24,600 followed by 24,550 and 24,500. On the higher side, 24,800 can be an immediate resistance, followed by 24,850 and 24,900,” Matalia added.
The Bank Nifty index, which tracks the performance of the banking sector, gained 0.90% to open at 51,000 levels. “The charts of Bank Nifty indicate that it may get support at 50,500, followed by 50,300 and 50,200. If the index advances further, 51,000 would be the initial key resistance, followed by 51,100 and 51,300,” Matalia stated.
The cautious sentiment in the domestic market can be attributed to the mixed cues from global markets. The US market ended slightly lower after an eight-session rally, while Asian markets opened weaker in anticipation of the US minutes meeting today and Fed Chair Jerome Powell’s speech on Friday.
“The foreign institutional investors (FIIs) sold equities worth ₹1457 crore on August 20, while domestic institutional investors bought equities worth ₹2252 crore on the same day,” the analyst noted.
In the commodities market, gold prices remained steady near a record high of $2,518 per ounce, while crude oil futures traded lower on Wednesday morning. September crude oil futures were trading at ₹6,139 on the Multi Commodity Exchange (MCX), down 0.24% from the previous close.
“Despite yesterday’s gain of over half a percent in the Nifty, driven by banking, insurance, and NBFC stocks, the market is expected to remain rangebound with continued stock-specific movements,” Matalia concluded.